Coffee farmers fight to keep dollar accounts

Murang’a Coffee Farmers have rejected the state-backed proposal on the direct payment after every auction.

The growers through the giant Murang’a Farmers Cooperative Union have written to the Cooperative Cabinet Secretary Wycliffe Oparfanya following the April 17 meeting presided by the Principal Secretary Patrick Kilemi that the farmers rejected the move.

In a letter to the CS signed by Francis Ngone, dated May 19, fears that the proposal would strip farmers and their cooperative societies of the ability to manage dollar proceeds directly.

The letter followed the cancellation of the meeting at the Nairobi Coffee Exchange (NCE) on Wednesday, where hundreds of farmers across the country had prepared to present their views to oppose the move.

Ngone said direct payment to the growers undermines the spirit of co-operatives, a system that has been built over decades and has been successful.

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“The cooperative societies are at the risk of collapsing by transferring control to institutions with limited accountability,” read part of the letter seen by the Standard.

The letter has been copied to Deputy President Kithure Kindiki, the Council of Governors, the Capital Markets Authority, and the Senate, among others. 

President William Ruto, during the development tour of Mt Kenya region, said farmers will be receiving their dues through the Direct Settlement System (DSS), five days after the auction from next month.

Josphat Kanyingi from Kahuro sub county said the move by the state will cripple the coffee sector as the cooperative societies play a major role in maintaining quality of coffee that proceeds to milling.

“The idea itself was ill-conceived as the societies opened dollar accounts at the implementation of the Coffee General Regulations, 2019. The cooperatives can handle farmers' proceeds,” said Kanyingi. 

Kanyingi was among hundreds of farmers who travelled to Nairobi unaware of the cancellation of the stakeholders’ forum.

Also, other concerns are the introduction of a 1.8% levy by the Capital Markets Authority (CMA) on coffee marketers without due parliamentary approval or public participation, among other deductions.