The Mountain Journal in Kirinyaga
Kirinyaga coffee farmers have been ranked the best in production of quality coffee that has attracted the local and international buyers.
Nairobi Coffee Exchange (NCE) appreciated the Kirinyaga coffee farmers for the continued embracing of best farming practises.
In the farmers engagements forums in Kirinyaga, Murang’a, Nyeri and Kiambu, convened by NCE, to evaluate the performance of the sector in the coffee year 2023/2024 where 496,440 bags of coffee were sold through the auction.
Deputy President Rigathi Gachagua has insisted the coffee industry has made tremendous improvement through the reforms.
NCE convenes farmers forums to deliberate on gains, suggesting on areas of improvements
Gachagua said the government backed reforms will ensure farmers have accessible inputs to facilitate increased production from the current 51,000 metric tonnes to over 100,000 metric tonnes.
“I have been bestowed with responsibility to streamline the coffee, tea and milk sectors to productivity,” said Gachagua.
Photo/ Deputy President Rigathi Gachagua at Murang’a Coffee Mill in company of Murang’a leaders led by Governor Irungu Kang’ata and Cooperative CS Simon Chelugui.
NCE CEO Ms Lisper Ndung’u said the introduction of regulations have led to positive improvement in the sector, as the farmers get better prices at the auction adding that the quality grades attract the local and international buyers.
Ms Ndung’u says the players in the value chain are closely monitored by the regulators to ensure they work in respect to the regulations for the interest of the farmers in the 33 counties.
“In the value chain there are farmers, millers, marketing agents , warehouse managers, buyers all who have been placed in the Direct Settlement System (DSS) that pays for the services rendered,” said Ms Ndung’u.
NCE has directed that the societies in the crop year 2024/2025 must be connected with the DSS, where the leadership will monitor the transactions freely.
“At the inception of the reforms, there were challenges in DSS as farmers’ details entered were incorrect thus making it difficult in the remittance of payments,” said Ndung’u.
Photo/ Nairobi Coffee Exchange (NCE) Chief Executive Officer Ms Lisper Ndung’u
The service providers in the coffee value chain, she said, are required to harmonise their charges and upload them in the DSS.
In the counties sensitization meetings, the farmers suggested that they be paid in dollars instead of the Kenya shillings, as the coffee regulations 2019 demands.
The farmers questioned the delay in remittance of the payment after the sale of their coffee contrary to the regulations.
Photo/ Deputy President Rigathi Gachagua being shown coffee samples.
In the meetings, issues pertaining the delayed coffee milling, close collaboration with Coffee Research Institute (CRI) to help combat pests and diseases, strengthening of reforms, availability of subsided fertilisers, payment of the produce through dollar accounts featured most.
The regulators issue circulars to guide the multi billion shillings industry to profitability, through ensuring the players adhere to the laid down regulations.
A condition to end the delayed payment, the regulators have set timelines to the service providers, to issue invoices through the DSS, failure to which the full amount be remitted to the growers.
But Cooperative Cabinet Secretary Simon Chelugui said the DSS has reduced the long process, with the farmers accessing their money instantly five working days after the auction.
Chelugui said the delay in remittance of money to the growers has been occasioned by buyers’ delay to pay the money.
“The regulations are clear as penalties are imposed on the buyers should they fail to remit payment. The penalties administered by the Agriculture Food Authority include suspension of the buyers licenses,” said Mr Chelugui.
A member of NCE working committee Mr Peter Githinji said DSS ensures timely and transparent payment of coffee sales proceeds, directly transferring funds to farmers’ accounts.
Githinji said there was a need for dialogue among the farmers to ensure issues are resolved amicably.
“The system reduces delays and financial mismanagement risks, enhancing farmers’ financial stability and trust in the trading process,” said Githinji.
Githinji represented the NCE chairman Kenneth Gitonga in the farmers engagement forums in the counties of Nyeri and Kirinyaga, where he urged the farmers to nurture their coffee trees effectively for increased production.
Photo/ Coffee being sorted in a factory in Kirinyaga county
The Cooperative Bank Agribusiness Manager Ms Esther Kariuki said in the management of DSS, they are working in consultation with the regulatory bodies, to ensure service providers’ charges are harmonised for payments after the auction.
“From July 1st, the service providers contracted by the coffee societies and estates are under instruction to upload their contract agreement through the DSS platform. This will assist in payment without delay after the conclusion of the weekly auction,” said Ms Kariuki.
Chairman at Inoi Cooperative Society in Kirinyaga, Mr Felix Muriithi Mwai said the government should support the farmers on availability of affordable inputs geared towards increased production of the commodity.
Mwai said the Kenya government should emulate Ugandan where the growers concentrate in avenues to increase production of the commodity.
“In Kenya the government has over-policed the coffee sector with a lot of regulations with little energy on strategies to increase production, while little is being done on availability of inputs to support increased production,” said Mwai.
Peter Njoroge Kamunyu, a farmer in Mathioya said the regulations demand farmers’ dues should be paid through the Direct Settlement System (DSS) after the auction in effort to reduce illegal deductions.
Kamunyu said NCE should work to ensure the members in the society management committees are IT literate to ensure they follow up the payments should there be delays.
“ It is a challenge that the remittance of resources takes between three weeks and one month without the knowledge of the committees,” said Kamunyu
Francis Ngone, the chairman at Murang’a Farmers Cooperative Union said there was a need to strengthen the reforms, as the regulations are critical in the revamping of the sector.
Ngone said 80 percent of the reforms have been achieved, calling on for the implementation of the remaining ones.
“ The formulation of the coffee policies started way back in 2016. It has been a long journey but we are about to get through,:” said Ngone.
Morris Mwangi Maina Wangari a farmer at Rung’eto cooperative society in Kirinyaga said there was need for the government to introduce the extension officers to ensure the modern farming practises are followed to the latter.
“ More education is required on functions of the DSS as the majority of the farmers are in the dark on its operations,” said Maina.
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