The government has issued a stern warning to corrupt officials within Kenya’s coffee co-operative societies, with Co-operatives and Micro, Small and Medium Enterprises Cabinet Secretary Wycliffe Oparanya announcing plans to auction properties of managers found guilty of misappropriating farmers’ money.
Speaking on Thursday, Oparanya revealed that coffee co-operative societies across the country have accumulated debts totalling Sh6 billion. He blamed the crisis on widespread mismanagement and theft by co-operative directors, saying the government can no longer afford to continue writing off these debts.
“We can’t write off all debts every now and then and keep moving forward,” said Oparanya. “The government is ready to auction properties of directors who steal farmers’ money.”
The last time the government waived debts for coffee farmers was in 2011 when Sh1 billion was disbursed to revitalise the sector. However, current debt levels suggest that the problem of financial mismanagement persists, with many farmers suffering due to unwarranted deductions from their earnings.
To address these challenges, the government is banking on the Co-operatives Bill currently before the National Assembly. The legislation aims to curb mismanagement by introducing term limits for elected co-operative leaders and enhancing governance standards.
Oparanya noted that the ongoing reforms, championed by President William Ruto, will bring significant benefits to coffee farmers. These include improved protection against exploitation by brokers and cartels.
Additionally, the government has allocated Sh500 million for the procurement of five million coffee seedlings to boost production. The seedlings, tailored for various climatic zones, will be distributed through co-operative societies in response to a national shortage, which has led to importation from neighbouring countries.
Kenya’s coffee production has plummeted from over 200,000 tonnes in the 1980s to around 50,000 tonnes today. Oparanya emphasized the urgent need to reverse this trend.
Meanwhile, Tigania West MP John Mutunga has called for the introduction of guaranteed minimum returns for coffee farmers and the distribution of subsidised fertiliser through co-operative factories to enhance productivity and income.
The government hopes these measures will help restore the sector’s former glory.
