President William Ruto at a past event. Image: PCS

Ruto Announces Sh6 Billion Debt Relief for Coffee Farmers

Ruto has announced a substantial relief package of Sh6 billion for coffee farmers, aiming to alleviate their debts and rejuvenate the sector.

Speaking to Kenyan residents in the United States during a state visit, President William Ruto pledged to lead the Cabinet in approving the debt write-off upon his return to Nairobi.

This initiative, part of broader efforts to uplift coffee farming, is expected to invigorate the industry and benefit more than 600,000 farmers.

The President emphasized that this move would complement ongoing reforms geared towards expanding cultivation and bolstering farmer incomes. Additionally, Ruto committed to establishing a Sh2 billion fund to support cherry farmers, providing financial support during coffee auctions and alleviating immediate financial burdens.

The allocation for this fund is included in the upcoming fiscal year’s budget proposals awaiting approval by the National Assembly.

Pressure from Members of Parliament representing coffee-growing regions, particularly in the Mt. Kenya area, influenced the decision. They urged the government to emulate its previous action of writing off debts, such as the Sh117 billion relief for sugar farmers in 2023.

However, concerns have been raised about potential fraudulent claims, prompting the government to conduct a forensic audit of the Sh4 billion debt owed by coffee farmers to various stakeholders along the value chain.

Deputy President Rigathi Gachagua reiterated the government’s commitment to debt relief, citing the positive outcomes of ongoing reforms.

He assured coffee farmers during a visit to Murang’a county that the administration is actively addressing the issue, alongside Cabinet Secretaries responsible for Finance and Cooperatives.

Gachagua also highlighted the government’s success in combating cartels and unscrupulous brokers in the coffee sub-sector.

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