Coffee

Kirinyaga Coffee Farmers Oppose Government’s New Payment Model

Coffee farmers in Kirinyaga County have strongly rejected the Ministry of Cooperatives’ plan to introduce the Direct Settlement System (DSS), arguing that the move will harm cooperative societies and disadvantage small-scale producers.

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Under the new model, each farmer would be paid directly through the Nairobi Coffee Exchange based on the quantity of coffee they deliver.

However, during a tense annual general meeting at Muirwa Cooperative Society on Saturday, farmers voiced their discontent, saying the plan threatens the unity and sustainability of cooperatives that have long supported them.

Farmers expressed concerns that individual payments would create inequality, especially between those producing smaller volumes and large-scale producers. Grace Mwangi, a farmer, said they prefer collective payment under one rate.

“We don’t want a system where someone selling just 10 kilos is paid individually—it’s unfair,” she said.

Peter Warui, another farmer, emphasized that their original issue was with corrupt cartels, not with how payments were made. “Our problem was with cartels. Once the government removed them, all we need now is for cooperatives to continue managing our payments,” he said.

The DSS was introduced in November last year as part of reforms intended to fast-track payments, promising to deliver 80% of proceeds to farmers within five days, with cooperatives keeping the remaining 20%.

But farmers now argue that bypassing cooperatives undermines institutions that are critical to their operations.

Responding to the farmers, Muirwa Cooperative Chairman Geoffrey Munyagia assured members their data would not be submitted for the DSS rollout, affirming the society’s decision to formally record its rejection of the system.

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