Coffee farmers seek recruitment of more direct settlement service staff
Business
By
Boniface Gikandi
| Sep 17, 2024
Coffee farmers are seeking recruitment of additional operators in the direct settlement service (DSS) eyeing for improved remittance of their proceeds from the market.
The growers have petitioned Cooperatives Cabinet Secretary Wycliffe Oparanya to initiate a process of recruiting additional DSS players to perfect coffee payment platforms and supplement efforts by the Cooperative Bank of Kenya.
The Kenya Coffee Producers Association (KCPA) has been spearheading farmers' interests towards implementing the coffee regulations 2019, to enable them to enjoy benefits.
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KCPA Chairman Peter Gikonyo said the association has written to the regulators, which includes the recruitment of three additional players, to bring to an end the delay in the remittance of proceeds.
The association has listed down the challenges faced by the growers as they also demanded that they be paid in dollars as 75 per cent of the cooperative societies opened dollar accounts.
"In the past year, DSS has been performing below par, owing to being overwhelmed by thousands of transactions initiated by players in the value chain. The farmers have travelled to Nairobi Coffee Exchange (NCE) and Capital Markets Authority (CMA) following the delay in receiving their money five days after the auction," said Gikonyo.
Harrison Chege, chairman at Gatagua Cooperative Society in Kahuro says the debate on additional DSS players has been rife since May when the coffee regulators held sensitisation meetings in the counties.
Chege said the performance of the DSS has been below the farmers' expectations, seeking the return of the former coffee milling and marketing procedures.
"I have severally been in meetings with players in the value chain, checking on their payments by the DSS, and ensuring all the payments to the farmers are affected," said Chege.
NCE Chief Executive Officer Ms Lisper Ndung'u downplayed the issues, saying the DSS platform manned by the Cooperative Bank has been effective.
"In case there are issues, the farmers call the regulators or visit the Cooperative Bank launch to lodge their complaints or seek clarifications about payments and deductions," said Ms Ndung'u.