Farmers win as NCE orders halt of  direct payment model  to coffee farmers

The Mountain Journal

editor@themountainjournal.co.ke

Celebrations greeted the coffee cooperative societies after the Nairobi Coffee Exchange (NCE) directed the Cooperative Bank to put on hold implementation of the direct payment model, designed to remit proceeds to the farmers through the money mobile transfer five days after the coffee auction.  

NCE Acting CEO Mr  Symon Mburia in a letter dated July 10,  directed Cooperative Bank CEO Gedion Muriuki to put on hold the migration to the farmer direct payment model from the Direct Settlement Systems (DSS), pending further guidance from the relevant regulatory authorities. 

The DSS was launched on August 15, 2023 in line with the Coffee General Regulations 2019, and is operated by the Cooperative Bank

.“NCE directs that the current settlement payment system remains in use until such time that new instructions are issued. This position has been agreed upon to ensure continuity and stability in the trading and settlement process,” read part of the letter.

Already, the leadership of cooperatives in Mt Kenya region had opposed the programme citing threat to the cooperatives societies and the saving and credit saccos.

 Kirinyaga farmers moved to court to challenge the decision by Cooperative Cabinet Secretary Wycliffe Oparanya.