Rattled high coffee output by neighbours, Kenya plans to revamp its wobbly industry to produce 500,000 tonnes annually

Rattled high coffee output by neighbours, Kenya plans to revamp its wobbly industry to produce 500,000 tonnes annually

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Kenya is laying the groundwork to raise it coffee production 10 times its current 50,000 metric tonnes per annum as it braces for stiffer competition from neighbouring countries – Uganda, Ethiopia and Tanzania.

To achieve the target National Treasury has allocated Ksh500 million to finance he propagation and distribution 20 million improved coffee seedlings annually

Principal Secretary (PS) for the State Department of Cooperatives Patrick Kilemi says the programme aims to increase production in all coffee growing regions in Kenya.

Kilemi, speaking in Murang’a where he met coffee farmers on Friday noted that the Coffee Research Institute (CRI) and New KPCU will be entrusted with propagation of the seedlings of high yielding coffee varieties.

He stated that coffee production in the country is still low as compared to other neighbouring coffee producing nations.

“Last year, Kenya produced 50,000 metric tonnes while Uganda produced 400,000 metric tonnes and Ethiopia produced 750,000 metric tonnes of coffee.

“We want our farmers to plant recommended coffee seedlings as we target to increase our production by more than 10 times. Properly planted and well nurtured coffee can produce more than 40 kilos per bush,” said Kilemi at Ihura Stadium.

Old coffee bushes, the PS said, are to blame for low production saying a coffee bush can only be properly productive for a period of 20 years. He noted that the government has revitalized the coffee sector and farmers have been receiving lucrative prices from their coffee.

“The reforms the government is implementing in the coffee sector are bearing fruits. We managed to remove cartels at the Nairobi Coffee Exchange as we separated licensing of millers, buyers and brokers,” he added.

To increase production of coffee, Kilemi averred that the government is also streamlining distribution of subsidised fertiliser to farmers. He remarked that the New KPCU has been mandated to source fertiliser from National Cereals and Produce Board (NCPB) and take it to coffee factories where farmers can access it easily.

“The New KPCU has also been mandated to distribute chemicals which the government has subsidised at about 40 per cent to control diseases and pests that affect coffee production,” noted the PS.

He said revitalisation of coffee will greatly contribute to the country’s GDP observing that the average price of a kilo of coffee in some areas currently is more than Sh100.

“Worldwide, coffee is number two after oil. The value of coffee trade in the world is estimated to be around 600 billion US Dollars. Kenya in 2023 got Ksh33 billion from coffee. Well natured and managed coffee can see returns from the cherry surpass income realised from tea,” stated the PS.

The government, Kilemi observed, targets to generate Ksh1 trillion in revenue from coffee in the near future saying the returns can only be achieved by cooperation with farmers for increased coffee production and attaining the required cherry quality.

The PS said the government plans to replace aging pulping equipment in all coffee factories with modern machines. He noted that the old machines have occasioned losses to farmers and interfered with coffee quality.

The PS further announced that the government has factored Ksh6.8 billion into the budget to clear coffee debts saying this will result in increased farmer income.

“After verification of accrued coffee debts by societies, it was established the needed amount is Sh6.8 billion which has been factored in the next financial budget. By August the debts will be cleared and farmers will be relieved from the financial burden,” remarked Kilemi.

On his part, Murang’a governor Irungu Kang’ata said his administration will set aside some funds in the next financial year to support farmers. The funds, he said, will facilitate farmers to increase production, saying from next month, a team from the county government will tour the USA and China to search for a market for Murang’a coffee.

“We are delighted as coffee factories in Murang’a this year have paid farmers at average of Ksh115 per kilo. This is a landmark payment,” said Kang’ata. He added that some factories like Wanjengi paid Ksh141, Kahuhia main Ksh122, Ngwethe Ksh120, Kaganda Ksh119 and Mutheru Ksh116 per kilo.

“In the recent past, a kilo of coffee was valued at Ksh20 and we laud the government for revamping the coffee sector, which will ensure farmers have more income,” he added.

The governor said his administration has taken measures to support coffee farming in the county, noting that already they have trained cooperative leaders.

Farmers led by Francis Ngone asked the government to drop the Direct Settlement System (DSS), saying the move will affect operations of cooperative societies. DSS, Ngone said, should be done away with as farmers continue receiving their payments from their factories.

“The government needs to reconsider DSS; farmers deliver their coffee to factories and being paid directly will see factories fail in their operations,” he added.

  • A Tell Media / KNA report / By Bernard Munyao and Purity Mugo
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