NAIROBI, Kenya- Coffee farmers in Kenya have a reason to smile, after the Cabinet on Tuesday approved writing-off historical debts amounting Sh6.8 billion.
To facilitate the settlement of the debts accrued by farmers, coffee co-operatives, saccos and other creditors have been asked to submit to the Ministry for Co-operatives, within seven days, the list of all farmers who owe them money and with all the supporting documents for verification and processing of payment.
“Any fraudulent and fictitious claims will be dealt with in accordance with the law,” a statement issued after a Cabinet meeting led by President William Ruto reads.
Further, the Cabinet called on Parliament to fast-track the enactment of corporate governance reforms for co-operatives to establish institutional safeguards that will enhance accountability and transparency, including the requirement that the process of borrowing by co-operatives is only authorised by farmers during annual/extra-ordinary General meetings.
To bolster the coffee production value chain, the Cabinet said the New Kenya Planters Cooperative Union (KPCU) will undergo modernisation in accordance with international best practices.
“Additionally, to address the concerns on the quality of coffee parchments, modern eco-pulpers will be established in all emerging coffee growing areas for primary processing, enhancing efficiency and sustainability of the sub-sector,” the Cabinet said.
