The Kenyan government has earmarked Ksh.5.9 billion for the Coffee Cherry Advance Revolving Fund to revitalize the coffee industry and improve farmers’ livelihoods. This move is part of the government’s broader strategy to make the coffee sector more efficient and profitable for farmers nationwide.
Government spokesperson Isaac Mwaura announced the start of fund distribution on January 8 in Makueni County, with the programme expected to be rolled out across all 37 coffee-growing counties, including Machakos, Kajiado, Taita Taveta, Kirinyaga, and Murang’a.
This distribution of funds is in line with the government’s comprehensive plan to rejuvenate the coffee sub-sector through systematic reforms.
“We have implemented strategic initiatives to boost production, benefiting over 5 million Kenyans involved in the entire coffee value chain,” Mwaura stated.
The funds will guarantee a minimum return of Ksh.80 per kilo, a substantial increase from the previous rate of Ksh.20 per kg, through the Cherry Advance Revolving Fund.
Simon Chelugui, the Cabinet Secretary for Co-operatives and SMEs, encouraged farmers to participate in the ongoing reforms to achieve high-quality coffee production and increased profits.
The proposed reforms include the re-establishment of the Coffee Research Foundation and the Coffee Board of Kenya, which will manage marketing and licensing for the 14 unions representing coffee farmers.
Kenya has implemented new regulations requiring millers, marketers, and brokers to obtain authorization from the Capital Markets Authority (CMA) to combat cartels in the coffee sector.
Earlier this year, Deputy President Rigathi Gachagua acknowledged the positive impact of state-backed reforms.
The Nairobi Coffee Exchange’s provisional results showed a significant increase in produce sold, reaching Ksh.821 million, compared to Ksh.54.6 million recorded five months ago. Average prices also saw an increase to Ksh.30,744, with the number of bags traded reaching 23,167, the highest since the auction reopened in August.