Coffee farmers from Nyeri are the biggest beneficiaries of the first tranche of the Coffee Cherry Advance Revolving Fund.
According to a report released by the New Kenya Planters Cooperative Union (KPCU), out of the Sh 3.24 billion paid out to farmers by mid-February, Sh 595 million was taken up by coffee farmers from the county. Similarly, the county recorded the highest number of beneficiaries with each of 66,415 farmers taking home an average of Sh 8,900 from the revolving fund.
The report also shows that coffee farmers from Kirinyaga are the second biggest beneficiaries of the fund where 44,314 of the farmers had benefited from Sh 473 million (Sh 10,689 per farmer) by February 16.
“The fund is targeting over 700,000 smallholder coffee farmers in the country. A total of 259,040 coffee farmers from 24 coffee growing counties have so far received the funds,” says the report.
The official disbursement of the fund started in January this year after the government announced a Sh 60 increase in the Coffee Cherry Advance Revolving Fund from the previous Sh 20. This meant that farmers would be paid Sh 80 for every kilogram of cherry delivered to the factories.
According to Co-operatives, Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui, the increment followed a decision by the cabinet to approve an additional Sh 4 billion to the kitty bringing the total amount to be advanced to coffee farmers to Sh 6.7 billion.
“The cabinet has approved a further Sh 4 billion to increase the Coffee Cherry Advance Revolving Fund from Sh 20 per kilogram to Sh 80 per kilogram of cherry delivered to the factories. The fund will be managed by the New KPCU,” said Chelugui.
Speaking in Nyeri during a farmers’ sensitization forum, the Co-operatives CS said that the funds were aimed at cushioning farmers from poor market prices. He said that the release of the money is part of the many reforms that the government is instituting in bid to revitalize the coffee sub-sector and spur economic growth.
“The money is supposed to sustain the farmer as he/she await the proceeds from the sale of the cherry. Within a month of harvesting, you should get your Sh 80 but you will receive it in the following manner. Once you deliver your cherry to the pulping unit you should be given a receipt of your coffee and you are entitled to Sh 40,” Chelugui told the more than 3,000 Nyeri coffee.
“Secondly, once the coffee is processed and dried by the factory and delivered to the miller within three weeks and once that process is complete you receive the remaining Sh 40,” he added.
Other big beneficiaries of the funds include Kiambu (Sh 344 million), Kericho (Sh 316 million), Murang’a (Sh 280 million), Embu (Sh 246, 325million) and Machakos County (242million). So far, 16,285 coffee farmers from Bungoma county have each taken home Sh 13,986 each, translating to a Sh 227million uptake by the county while in Meru county, 7,302 farmers have accessed Sh 149 million from the fund.
Conversely the report says that,“Out of the 24 coffee growing counties, Nakuru(Sh56,410), Homa Bay (Sh100,000) and West Pokot (Sh 750,000) had recorded the least uptake of the funds.”
By Wangari Mwangi
