The Treasury has published regulations authorising the expenditure of the Sh3 billion that Uhuru set aside for struggling coffee farmers
Image: FILE
Cabinet secretaries Ukur Yatani (Treasury) and Peter Munya (Agriculture) have sprung into action to roll out the Sh3 billion coffee fund and other programmes President Uhuru Kenyatta announced on Tuesday to boost farmers earnings.
The two have rejuvenated activities at the Agriculture ministry after the sacking of Mwangi Kiunjuri. Among the reasons the abrasive politician was dropped was a belief that he failed to improve farmers’ livelihoods, sparking a rebellion.
The Treasury has published regulations authorising the expenditure of the Sh3 billion that Uhuru set aside for struggling coffee farmers.
The Public Finance Management (Coffee Cherry Advance Revolving Fund) Regulations 2019 seek to provide a framework for extending credit to smallholder farmers.
It also gives the government a platform for receiving grants, donations, and gifts to help bolster the growth of the coffee sector.
The proposals seek to remove middlemen in the coffee value chain by allowing farmers to sell their produce directly to Kenya Planters Cooperative Union millers.
Only farmers who are members of a registered coffee sacco or smallholder estates affiliated to the mother union will benefit from the monies.
And to operationalise the same, Munya unveiled the new KPCU board to oversight the fund.
The regulations posit that there will be an administrator of the fund who will supervise the kitty and maintain the accounts.
If approved by Parliament, eligible farmers will be advanced – within 14 days, at the rate of 40 per cent of the prevailing average sales price at the Coffee Exchange.
Another option would be to advance cash at the rate of Sh20 per kilo of coffee cherry delivered or 40 per cent of payment rate to sacco members.
“The board may recommend a review of the rates under this regulation from time to time to the Cabinet Secretary,” the regulations read.
To recover the monies, the advance will be the first charge on the applicant’s sale proceeds.
The board will also be allowed to appoint agents to collect the debts with farmers equally allowed to repay through other income sources.
As a deterrent for ghost farmers, any false information in regards to trading coffee through the fund will attract a Sh10 million fine.
The fine, with an alternative of five years in jail, shall also apply to persons who misappropriate funds or assets of the fund.
Munya who took over at Kilimo House from Mwangi Kiunjuri on Thursday announced the release of Sh230 million for managing desert locust invasion in the country.
Swarms of locusts have invaded Mandera, Wajir, Marsabit, Garissa, Isiolo, Meru, Samburu and Laikipia counties.
The new Agriculture CS also increased to Sh33, the price of milk per litre at Kenya Cooperative Creameries from the initial Sh27.
He also restated Uhuru’s order that all agencies source rice from the Kenya National Trading Corporation – the entity that buys from farmers.
Farmers have welcomed the changes saying they trust Munya will deliver. Kenya Farmers Association director Kipkorir Menjo said the minister will sort out challenges in the sector.
“I know him as someone who is focused on his work. We have worked in other areas in an attempt to deal with farmer’s challenges,” Menjo told reporters on Wednesday.
edited by p. obuya