The Lower Eastern Times Opening The Third Eye
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The government has reconsidered its directive requiring coffee farmers to receive payments directly through bank or mobile money accounts, amid fears that the move could disrupt the coffee industry.
The policy, introduced in 2023 by Co-operatives Cabinet Secretary Wycliffe Oparanya, aimed to speed up payments by cutting out delays and ensuring farmers are paid promptly after auctions.
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However, stakeholders warned that the directive could weaken cooperative societies, which are vital to coffee farming operations.
“Our concern is that this system risks dismantling cooperatives, which are crucial to farmers,” said Simon Mureithi, a coffee society chair from Nyeri. “Without them, we lose access to loans, inputs, and essential services.”
Mureithi emphasized that cooperatives provide farmers with financial management support, credit access, and supplies like fertilizer. He cautioned that direct payments could result in fragmented income, making it hard for farmers to repay loans or reinvest in their farms.
In November 2024, CS Oparanya instructed cooperatives to submit member data to facilitate direct payments via the Direct Settlement System (DSS). Backed by Parliament, the directive sought to eliminate chronic payment delays, sometimes lasting up to a year.
While some advocates argued DSS could boost transparency and empower farmers financially, growers from regions like Mt Kenya and the Rift Valley said bypassing cooperatives would jeopardize their sustainability.
“Without cooperatives, who will provide production inputs?” Mureithi questioned. “These organizations are more than marketing bodies — they’re the foundation of coffee farming in Kenya.”
During a recent meeting in Meru, CS Oparanya distanced himself from the directive, saying he couldn’t clarify how it would be implemented and instead referred to Parliament, which had passed the law enabling it.
A source within the Ministry of Co-operatives later revealed that the DSS rollout has been postponed, citing fears that weakening the cooperatives could destabilize the entire coffee sector.
