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Government to Waive Sh176 Million Debt For Embu Coffee Mills- Kindiki

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EMBU, Kenya – Deputy President Kithure Kindiki has announced that the government will waive the Sh176 million debt owed by Embu Coffee Mills as part of ongoing reforms aimed at reviving the country’s coffee sector.

Speaking at an engagement with coffee farmers at Kavutiri Primary School grounds in Runyenjes, Embu County, Kindiki emphasized the government’s commitment to improving the livelihoods of coffee farmers and addressing longstanding issues in the sector.

The announcement came as Kindiki highlighted the Sh7 billion available to farmers under the Coffee Cherry Advance Fund, which is designed to provide affordable financing to coffee growers.

This initiative is part of a broader strategy to strengthen the coffee sub-sector, which has seen improved returns this year, with some farmers now receiving over Sh100 per kilogram of coffee cherry.

Kindiki also called for stricter governance of coffee cooperatives, emphasizing the need to eliminate mismanagement and corruption that have plagued the industry for years.

He noted that some cooperative managers had taken out high-interest loans, even though the government has provided more affordable options through the Coffee Cherry Advance Fund.

“We must ensure the governance of cooperatives is streamlined. We must not allow mismanagement of coffee societies. Some managers have taken loans attracting high interest rates, yet the government has allocated money under the Coffee Advance Cherry Fund at affordable interest rates,” Kindiki stated.

The Deputy President’s remarks come as part of a series of reforms aimed at improving the coffee sub-sector, which has seen farmers struggle with low earnings and poor management practices in the past.

Kindiki further reaffirmed the government’s commitment to improving coffee farmers’ earnings, citing the highest returns recorded in recent years.

He said the government had successfully raised the pay to above Sh100 per kilogram of cherry in just two years, with the possibility of further increases, especially in areas where farmers are already receiving over Sh150 per kilogram.

“We promised deserving pay for farmers and guaranteed minimum returns. In our manifesto, we promised to raise the pay to at least Sh100 per kg of cherry. We have raised above Sh100 in only two years in office. It is possible to raise further than the Sh150 farmers are receiving now in some areas,” Kindiki said.

In line with these efforts, Kindiki also revealed that the Coffee Bill 2025 and Cooperatives Bill 2025 are being finalized.

These two pieces of legislation aim to introduce more comprehensive reforms that will streamline the coffee sector, improve governance, and ensure that farmers receive fair compensation for their produce.

One of the key reforms under consideration is the issuance of a single license for each actor in the coffee value chain, including farming, milling, brokerage, and marketing.

This change aims to reduce the multiplicity of roles within the sector, which has been a source of exploitation and mistreatment of farmers.

Additionally, Kindiki highlighted the improved payment system, where farmers now receive their pay within five days of sale at the Nairobi Coffee Exchange, a significant improvement from the past, where delays in payments were common.

The government is also working on enhancing the availability of subsidized fertilizers to ensure that farmers have access to them at the right time.

In addition, subsidized pesticides will be made available to ease the financial burden on farmers, helping them to manage their crops more effectively and improve yields.

“We will also subsidize pesticides to ease the financial pressure on farmers. Most of us were educated from coffee proceeds. It was black gold and eased lives for many families. We are working on ensuring that we get back to this so we significantly empower the people who rely on this crop,” Kindiki added.

In his address, Kindiki cautioned against mixing petty politics with development issues, stressing that political infighting would only delay progress and further harm the people.

He urged Kenyans to focus on the government’s work and to support the administration in achieving its development goals.

“We don’t want to engage in petty politics because we will waste time and wananchi will suffer. This is our government, we elected it and it is serving us,” Kindiki remarked.

The Deputy President also pledged more development projects for the Mt. Kenya region, a promise made by President William Ruto during his recent tour of the area.

Kindiki emphasized that the government is committed to implementing these projects quickly and efficiently to improve the region’s infrastructure and economic opportunities.

“The work you assigned us we are on it. We are working hard to fulfill it so that when we come for your support, we will have a scorecard to show,” Kindiki concluded.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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