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Simon Chelugui, the Cabinet Secretary for Co-operatives and Small, Micro, and Medium Enterprises, has urged coffee farmers in Murang’a to capitalize on the recent reforms in the sector to enhance their production.
Addressing farmers during a coffee meeting, Chelugui emphasized that the Minimum Guaranteed Returns (MGR) set by the government would provide farmers with an opportunity to increase production and consequently enhance their earnings.
Chelugui highlighted the ongoing reforms in the coffee sector, expressing that many farmers had previously abandoned the crop due to inadequate returns. He emphasized the significance of the established minimum guaranteed price of Sh. 80 per kilo of delivered coffee, ensuring that farmers do not suffer losses for their efforts.
The CS explained that Sh. 80 would be paid once the farmers deliver coffee to their respective factories, and any surplus funds would be disbursed as a bonus after the coffee is sold. Chelugui shared that the implementation of these reforms has led to an increase in coffee prices, with the government engaging more international buyers.
He disclosed ongoing negotiations with buyers from Korea and America who have expressed interest in Kenyan coffee.
With a focus on producing quality coffee, Chelugui anticipates a doubling of the cash crop’s price, aiming for a kilo of coffee to sell for Sh. 150 within a year. He credited the directive ensuring each participant in the coffee market adheres to specific duties, preventing exploitation of farmers as one person previously handled milling, brokerage, and marketing.
Plans are underway to provide subsidized inputs to coffee farmers, including fertilizers and chemicals, to alleviate high production costs. Chelugui emphasized the government’s commitment to eradicating poor leadership in coffee cooperative societies, ensuring farmers’ income is protected and reaches them without delay.
The Chairman of New KPCU, Daniel Chemno, assured farmers that the coffee delivered to their facility is well protected, and efforts are made to secure high prices in the Nairobi coffee exchange market. Farmers, represented by their chairman Francis Ngone, requested government support for coffee factories to modernize their equipment and streamline access to cherry advance payments.
They expressed optimism that the sector’s new reforms would make it lucrative as it was in the 1980s.
