State considering debt waiver, Gachagua tells coffee farmers

He assured farmers of sustained reforms, financing.

In Summary
  • Gachagua added that the government has defeated the cartels and unscrupulous brokers that had infiltrated the coffee sub-sector.
  • “We have cornered and defeated the cartels and export earnings have doubled in the last year.”
Deputy President Rigathi Gachagua touring newly constructed Murang'a Coffee Mills Factory in Maragua, Murang'a County on March 20, 2024.
Deputy President Rigathi Gachagua touring newly constructed Murang'a Coffee Mills Factory in Maragua, Murang'a County on March 20, 2024.
Image: DPCS

Deputy President Rigathi Gachagua has told coffee farmers the government could consider waiver of debts as part of a range of solutions to their financial challenges.

The Deputy President said the government will not relent in the ongoing reforms in the sub-sector and that more will be done to boost income in the coffee industry.

His assurance comes one month after a section of leaders from coffee-growing counties called on the government to consider bailing them out of debt.

Addressing hundreds of coffee farmers in Maragua, Murang'a County on Wednesday after commissioning the newly constructed Murang'a Coffee Mills Factory, Gachagua assured that the Kenya Kwanza administration is on top of the issue.

"Myself and Cabinet Secretaries Njuguna Ndung'u for National Treasury and Simon Chelugui for Cooperatives will address the issue of debts," said the Deputy President.

The debts are owed by coffee farmers to financial lenders and buyers.

Gachagua added that the government has defeated the cartels and unscrupulous brokers that had infiltrated the coffee sub-sector.

"I was instructed by President William Ruto to lead the reforms and we are doing well. We have cornered and defeated the cartels and export earnings have doubled in the last year," said the Deputy President.

He explained that the aim of the government's interventions in the sub-sector, such as the increment of the Cherry Fund from Sh4 billion to Sh6 billion, distribution of subsidised fertiliser and search for more foreign markets, is to boost farmers' earnings and boost the rural economy.

The DP was accompanied by Chelugui, Murang'a Governor Irungu Kang'ata, the host MP Mary Wamaua, deputy governor Mburu Munaini and senators John Methu (Nyandarua), Karungo Thang'wa (Kiambu) and Veronica Maina (Nominated).

Others were MPs Sabina Chege (Nominated), Michael Muchira (Ol Jorok), Mohammed Ali (Nyali), Edward Muriu (Gatanga) and area MCAs among other leaders.

New Kenya Planers and Cooperative Union managing director Timothy Mirugi, acting CEO of Nairobi Coffee Exchange Lisper Ndung'u and Murang'a Cooperative Farmers Union Chairman Francis Ngone were also present.

Gachagua lauded Chelugui for his participation in the reforms in the coffee industry and the other crops such as avocado and macadamia.

He described the Cabinet Secretary as a true reformer.

He further commended the Murang'a Farmers Union for the construction of the ultra-modern coffee mill.

The Deputy President said the facility will mitigate and caution the growers from high milling losses, unbiased grading of the beans and coffee traceability.

He said the farmers-owned factory will also enhance production and data management to inform strategic decisions.

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