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Nairobi Coffee Exchange Auction reopened

Deputy President (DP) Rigathi Gachagua on Tuesday led the re-opening of the Nairobi Coffee Exchange Auction hosted at The Kenya Planters’ Cooperative Union (KPCU) at Wakulima House in Nairobi.

The DP noted that initially few individuals benefited from coffee sales, leaving the farmers unaware of coffee markets, prices, and potential bidders, and that this will be a thing of the past with the re-opening of the coffee exchange auction.

He added that the government has vowed to embrace reforms in the coffee sub-sector, tea, milk, Miraa, and every other productive agricultural division.

Gachagua appreciated President William Ruto for tasking him to address changes in the sub-sector, saying, “I thank the president for giving me the duty to implement changes in the coffee sub-sector. I got my education through coffee earnings.”

Recalling the early years of the 1970s and 1980s, when coffee sales were profitable, Gachagua emphasised that there were greater developments back then compared to today.

The DP also maintained that the increased number of millers and marketers in the coffee market is what has led to low gains for the farmer.

“When we opened the market, we brought many millers and marketers, and that is how things went wrong. And that should not have been the case because liberalisation of the sub-sector should have more gains as opposed to losses for the farmer,” Gachagua stated.

Speaking about the sector’s potential reforms, The DP maintained that the sub-sector has been captured by cartels, and he has plans to meet with members of parliament to enact laws that align with the farmer’s recommendations.

He explained that the recommended changes include the formation of the Coffee Board of Kenya to encourage farmers’ diversity, the Revival of KPCU to help avoid milling losses and eradicate grading frauds, and the revival of the Coffee Society Foundation to aid farmers in research analysis.

The DP also assured the farmers that the Kenya Kwanza government is prepared to engage in a fight against all cartels involved in the sabotage of the coffee sub-sector.

He warned the stakeholders that the fight may accrue some pain for them but promised a beautiful solution in the end.

“What I want to assure you is that when the president said we would do these reforms, we knew the war would be tough and we must be prepared. I will hold the cartels by the neck, will you bear the kicks? The DP challenged the farmers, saying that the cartels might fight back and the farmers must be ready.

Gachagua advised farmers to tighten their belts for about a year and a half as they face off against coffee market intermediaries.

The Deputy President stressed on changes in the cooperative sector’s leadership, citing that the society’s officials have been conflicted by marketers.

The DP tipped off a recent disagreement between the co-operative officials who opposed the government’s plan for the purchase of cheap fertiliser.

Gachagua urged farmers to ignore the varied co-operative officials and purchase the subsidised Sh. 2500 fertiliser for farmers, which is readily available in the market.

“Recently, we provided Sh. 3,500 in fertiliser for the coffee sector, society officials said they will buy the Sh. 7, 000 in fertiliser because they have a commission. Farmers, when society officials tell you to buy fertiliser at Sh. 5, 000, do not accept it because we have fertiliser for Sh. 2,500 that is subsidised by the government.” Gachagua said.

The DP suggested that, while looking forward to amending the Coffee Act, they will also consider reforms to the Co-operative Act to create reliable governance in co-operative societies.

By Samson Nkooma

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