By BRIAN MUSYOKA
The government has moved to streamline long-standing debts in the coffee sector, announcing that only verified claims by cooperative societies will be settled as part of sweeping reforms aimed at restoring farmers’ earnings and confidence.
Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises, Wycliffe Oparanya, said the decision follows a comprehensive audit of liabilities submitted by coffee cooperative societies across the country.
Speaking in Embu during farmers engagement, the CS said the audit established that only KSh 6.2 billion of the debts claimed by various societies met the threshold for government settlement. He emphasized that the verification exercise was necessary to eliminate inflated and questionable claims that have burdened the sector for years.
Oparanya warned that any debts not captured in the audited report will not be honored by the government, insisting that accountability must guide the ongoing reforms. He noted that the move is intended to ensure public resources are directed only toward legitimate obligations.
“Any cooperative society whose debt is not reflected in the audited report will have to resolve those obligations internally, through their management committees and farmers,” he said.
He confirmed that the government has already begun settling the verified debts. He disclosed that KSh 2 billion has been set aside in the initial phase of payments.
Further he explained that the phased payment plan is designed to ease financial pressure on cooperative societies while enabling them to resume normal operations without delay. The move is expected to inject liquidity into the sector and improve prompt payments to farmers.
Beyond debt settlement, Oparanya outlined a raft of structural reforms aimed at improving efficiency across the coffee value chain. He noted that the government is keen on eliminating operational inefficiencies that have reduced farmers’ returns over time.
Among the key changes announced is a policy shift that will bar cooperative societies from procuring their own milling machines. The CS said the move will help avoid duplication of infrastructure and reduce operational costs.
Instead, milling services will be centralized under the Kenya Planters Cooperative Union, which will provide the services at more affordable rates to farmers. He argued that centralization will enhance quality control and transparency in the milling process.
The CS also highlighted the role of the government-backed cherry fund, describing it as a major boost to farmers. He said the fund is already facilitating faster payments to farmers, with deliveries now being paid within five days.
According to CS Oparanya, the cherry fund will also offer farmers access to low-interest credit, enabling them to finance farm operations without relying heavily on expensive commercial bank loans. This, he noted, will improve productivity and encourage farmers to expand coffee cultivation.
He added that the reforms are part of broader efforts to revive the coffee sector, which has faced declining production and farmer dissatisfaction over delayed payments and high operational costs. The government believes improved efficiency will translate to better incomes.
Farmers attending the meeting welcomed the reforms, expressing optimism that the verification of debts and faster payments will restore trust in cooperative societies. They also noted that affordable milling services could significantly reduce deductions from their earnings.
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