
The government will consider auctioning properties owned by coffee co-operative managers who steal from farmers, CS Wycliffe Oparanya has said.
He said the government has no capacity to keep writing off debts incurred by coffee co-operative societies.
Opranya said t currently, the societies have incurred debts amounting to Sh6 billion and have been asking the government to waive them off as they continue to eat into their earnings.
But some of the debts end up in individual’s pockets as farmers are impoverished by deductions on their proceeds.
"We can't write off all debts every now and then and keep moving forward. The government is ready to auction properties of directors who steal farmers’ money," he said.
The government last waived coffee farmers’ debts after disbursing Sh1 billion in 2011 in efforts to revitalise the sector.
Oparanya asaid the Co-operatives Bill currently in the National Assembly, will help stem mismanagement of factories and co-operative societies.
The Bill, once passed, will introduce term limits for elected leaders co-operatives to bolster good governance.
“Farmers will get many benefits once the reforms led by the President take full effect and the Bill is implemented to the letter,” he said, adding that they will curb farmers’ exploitation by cartels and brokers.
The CS said Sh500 million has been allocated to procure 5 million coffee seedlings this year alone to improve quality and quantity.
The seedlings will be distributed through coffee co-operative societies because the shortage led to importation from neighbouring countries.
“There are only 3 million seedlings currently being produced in the whole country hence the importations,” Oparanya said.
He said the seedlings are being propagated to fit climatic conditions experienced in different coffee zones.
Years back, Kenya was among the great producers of coffee in Africa and globally but that the production has since declined.
"Farmers used to produce more than 200,000 tonnes in the 80s compared to today's production of about 50,000 tonnes. We need to increase our production," the CS said.
Tigania West MP John Mutunga called for guaranteed minimum returns to be imposed to boost farmers’ earnings and ensure subsidised fertiliser is disbursed to factories.