Leaders of various coffee cooperative societies in Murang’a have opposed Direct Settlement System (DSS) mode of payment for farmers’ coffee.
The leaders argue that the payment of cherries directly to farmers will render cooperative societies insignificant.
In a recent meeting held between officers from the state department of cooperatives led by PS Patrick Kilemi and coffee farmers in Murang’a, the society leaders lauded reforms the government is implementing in the coffee sector but downplayed DSS.
The DSS is meant to ensure farmers are paid directly after coffee is traded at Nairobi Coffee Exchange within a period of five days.
The leaders who spoke to KNA noted the payment of cherry should not bypass cooperative societies, since farmers deliver their cherry to their respective factories.
Chairman of Kahuhia Cooperative Society Godfrey Kanyiri who spoke to KNA via phone observed that cooperative societies play an important role in collecting and marketing farmers’ coffee.
He said bypassing the cooperatives when it comes to payment means farmers will not deliver part of the money needed to cater for operations of cooperatives.
“Societies are entrusted to collect, weigh, and process coffee at factory level before it is marketed through brokers. Coffee at NCE is traded in US dollars and our farmers don’t have dollar accounts. Let their payment continue to be channeled through their cooperative societies,” noted Kanyiri.
He added that it would be prudent to assist the growers increase production and stop misleading farmers on the pay points.
“The cooperatives also have huge debts which farmers need to pay through their earnings; DSS can delay settlement of these debts,” he added.
Kahuhia society, he said, in the coffee year 2024/2025 received a payment of Sh130 million through the DSS, where Wanjengi factory emerged the best with payment of Sh141.55 per kilogram.
“First, let the government waive the coffee debts to free the farmers; issues on payment to farmers are handled effectively by the management of their societies,” said Kanyiri.
On his part, chairman of Murang’a Cooperative Union, Francis Ngone said the effort to increase coffee production can effectively be done by cooperative societies.
“Cooperative societies have a mandate to ensure farmers’ access to subsidized inputs like fertilizers and chemicals. Bypassing the cooperatives when it comes to payments is like leaving farmers to operate on their own,” he said.
In a statement, the PS said the government will allow the farmers to deliberate on the matter, as he emphasized increased production.
Kilemi noted DSS was implemented to ensure farmers get their money in the shortest time possible after their coffee is traded at the NCE.
By Bernard Munyao
