BY RITA MUTHONI
The government will only settle verified and audited debts owed by coffee cooperative societies, Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has announced.
Speaking at Karuri Grounds during a farmers’ meeting, Oparanya said a nationwide audit identified KSh 6.2 billion as legitimate debt eligible for payment. He warned that any unverified claims would not be considered.
“Cooperative societies whose debts were not captured in the audit report will have to resolve these internally through their management and farmers,” he said.
Oparanya added that the government has already begun clearing verified debts, with KSh 2 billion allocated in the first phase.
In a major policy change, the CS announced that cooperative societies will no longer be allowed to acquire their own milling machines.
Milling services will now be centralized under the Kenya Planters Cooperative Union (KPCU), which is expected to reduce costs for farmers.
He emphasized that the reforms aim to improve efficiency and coffee quality across the country.
The CS also highlighted the government-backed cherry fund, which allows farmers to receive payments within five days of delivering their produce.
The fund will provide access to affordable credit, reducing reliance on high-interest commercial loans.
The reforms are part of a broader government plan to streamline the coffee value chain, increase farmers’ earnings, and revive the sector’s productivity.
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