Coffee Farmers Benefit from Ksh 61M Cherry Advance Fund Disbursement

In a significant boost for the coffee sector, at least 4,906 farmers across various cooperative societies have received Ksh 61.9 million from the Coffee Cherry Advance Fund. This disbursement, which occurred between August 5 and August 12 this year, marks a notable effort by the New Kenya Planters Cooperative Union (NKPCU) to support coffee farmers in Kenya.

The Coffee Cherry Advance Fund, established in 2021, aims to provide low-cost loans to coffee farmers, helping them avoid the high interest rates associated with commercial loans. The government, through the Ministry of Cooperatives, has been actively encouraging farmers to take advantage of this fund as a means of easing their financial burdens and improving coffee production. Since its inception, the fund has disbursed a substantial Ksh 5.1 billion to farmers, reflecting its pivotal role in the sector.

Machakos County emerged as a significant beneficiary in this recent disbursement, with 2,718 farmers accessing loans totaling Ksh 26.2 million. This county’s uptake highlights the growing importance of the fund in supporting local coffee farmers and their cooperative societies. Overall, Machakos County has received Ksh 569.4 million from the fund over the past five years, benefiting 45,426 farmers.

The impact of these loans extends beyond immediate financial relief. Deputy President Rigathi Gachagua has been actively promoting reforms in the coffee sector, urging farmers to leverage the fund’s subsidies. During his recent campaigns in central Kenya, Gachagua emphasized the advantages of these subsidies in enhancing coffee quality and production. By utilizing the cherry fund, cooperative societies can avoid accumulating heavy debts, which often leave farmers with insufficient earnings.

NKPCU Chairman Daniel Kiprotich noted a rising trend in the uptake of the cherry fund among cooperative societies and estates. He highlighted that between July 22 and July 29, a total of Ksh 38.2 million was distributed to 1,919 coffee growers across 14 counties. Kiprotich credited the government’s subsidies for the increased coffee production and quality, asserting that these measures are revitalizing interest in coffee cultivation in areas previously less involved in the industry.

In the latest disbursement, several counties benefited significantly. Farmers in Murang’a applied for Ksh 5.3 million, Nyeri received Ksh 9.2 million, Meru secured Ksh 4.5 million, and Kiambu was allocated Ksh 4.5 million. In Kirinyaga County, farmers affiliated with the Ngiriambu Cooperative Society applied for Ksh 5.3 million. Notably, in Machakos, out of the Ksh 26.2 million distributed, Ksh 14.3 million was allocated to 1,411 farmers from the Muthunzuuni Cooperative Society. This allocation was made at a rate of Ksh 40 per kilogram of coffee delivered for processing.

The Coffee Cherry Advance Fund represents a crucial element in the government’s broader strategy to support the coffee sector. By providing affordable financing, the fund helps mitigate the challenges faced by coffee farmers, including high production costs and market fluctuations. As more farmers embrace this support, the sector’s resilience and productivity are expected to improve, fostering sustainable growth in Kenya’s coffee industry.