Chelugui decries reluctance to borrow cherry funds in Baringo

Kabarnet

Thursday, January 18, 2024

KNA by Benson Kelio 

Cabinet Secretary (CS) for Co-operatives and MSME’s Development Simon Chelugui has expressed concern over farmers in Baringo County shying away from taking coffee cherry funds meant to cushion their production.

Speaking during a coffee production sensitization forum at Kabarnet National Museums ground on Tuesday, Chelugui said it is regrettable to find out that only one farmer in the entire county borrowed the interest-free funds last year over the fear of an existing loan of Sh 48 million owed to Agricultural Finance Corporation.

The CS who also presided over the launch of the County’s coffee cherry advanced revolving fund distribution assured farmers that the proceeds of their hard-earned sweat would not be deducted under the new sector reforms to settle the over three-decade loans.

He added that the national government means well to them which is why in this financial year they committed an investment of Sh 6.7 billion to cover 25 percent of coffee farmer’s expenses thus allowing them to access liquidity and prevent them from borrowing high-interest loans.

“We want to tell our farmers that they now have a fund which will improve their livelihoods and prevent them from borrowing loans from moneylenders and financial institutions which will charge them high-interest rates,” he said.  

Chelugui stated that the fund being administered by the New Kenya Planters Co-operative Union (KPCU) will now see farmers receive Sh 80 per kilogram of cherry which is a significant increase from Sh 20 last year.

The Co-operatives CS who agreed with local farmers to increase the county’s annual coffee productivity from 175 tonnes to about 1, 000 tonnes, said the region especially along the Tugen hills stretch from Kabimoi in Koibatek Sub County to Kipsaraman in Baringo North has the potential to attain the target that will generate immense income to them.

Governor Benjamin Cheboi who was flanked by his deputy Felix Kimaiyo acknowledged that the outstanding debt resulting from accrued overdue loans has become a burden to farmers hence urging that it be urgently sorted for the farmers to be delivered from the bondage of loan.

Cheboi, who assured farmers that the cherry fund is an advance payment and not a loan, pledged to follow up on the matter with the relevant authorities to ensure they trade their coffee without worry.

“We don’t want our farmers to be scared while they are selling their coffee in the Nairobi stock exchange. What we want is for them to work hard in their respective farms and earn from their sweat,” he said.  

The County boss while lauding the national government for initiating the cherry fund said his administration has implemented programs like the distribution of certified seedlings which has seen an expanded cultivation area increase from 896 hectares in 2015 to 3, 200 in 2023, equating to approximately 4.4 million coffee bushes.

Principal Secretary in the State Department of Co-operatives Patrick Kilemi stated the need for youth to be introduced into coffee farming since they have the energy and expertise to take the sector to greater heights.

Kilemi argued that youth are the ones who can follow simple agronomics to improve yields per tree and in turn increase production.

Senator William Cheptumo stated that the coffee cherry fund is a welcomed boost in the semi-arid county where 32 percent of its residents are into crop production.

Cheptumo exuded confidence that extensive coffee production in the area is an option to perennial cattle rustling and banditry which has stagnated the economy of Baringo and the entire North Rift region.

Courtesy; KNA