The government’s proposed reforms to revive the coffee sub-sector have hit a snag due to resistance from coffee growers’ cooperative societies.
The National Taskforce on Coffee Sub-sector Reforms had recommended restructuring farmer’s cooperatives, writing off all outstanding debts and introducing a Sh3 billion revolving fund disbursed as Coffee Cherry Advance Revolving Fund (CCARF).
However, most of the unions are heavily indebted, with officials borrowing expensive loans from commercial banks using assets owned by members as collateral without their consent.
Some management officials have blocked their members from accessing the revolving fund to continue with high-interest loans since they get kickbacks.
To access the CCARF, the government incorporated Kenya Planters Cooperative Union (KPCU) into a state corporation to disburse funds to growers.
However, many farmers still fear losing money to KPCU, which they once owned before it went bankrupt.
The task force was subsequently morphed into Coffee Sub-sector Implementation Committee (CSIC), which encountered several hurdles in implementing its proposed legal reforms or Crops (Coffee) (General) Regulations 2019.
Its chairman, Prof Joseph Kieyah, demanded that an independent body undertake a forensic audit of all cooperative societies first before operationalizing new regulations for farmers to improve production by accessing CCARF and other credit.
