Nairobi Coffee Exchange Auction reopened

Nairobi

Monday 15th August, 2023

KNA by Samson Nkooma

Deputy President (DP) Rigathi Gachagua on Tuesday led the re-opening of Nairobi Coffee Exchange Auction hosted at The Kenya Planters’ Cooperative Union (KPCU) at Wakulima House in Nairobi.

The DP noted that, initially few individuals benefited from coffee sales leaving behind the farmers unaware about coffee markets, prices and potential bidders and this will be a thing of the past with the re-opening of the coffee exchange auction.  

He added that the government has vowed to embrace reforms in the coffee sub-sector, tea, milk, Miraa and every other productive agricultural division.

Gachagua appreciated President William Ruto for tasking him to address changes in the sub-sector saying… “I thank the president for giving me the duty to implement changes in the coffee sub-sector. I got my education through coffee earnings.”

Recalling early years of the 1970s and 1980s when coffee sales were profitable, Gachagua emphasized that there were greater developments back then compared to today.

The DP also maintained that, increased number of millers and marketers in the coffee market is what has led to low gains to the farmer.

“When we opened the market, we brought many millers and marketers and that is how things went wrong. And that should not have been the case because liberalization of the sub-sector should have more gains as opposed to losses by the farmer,” Gachagua stated.

Speaking about the sector’s potential reforms, The DP maintained that the sub-sector has been captured by cartels and he has plans to meet with members of parliament to enact laws that aligns with the farmers recommendations.

He explained that the recommended changes include formation of Coffee Board of Kenya to encourage farmers diversity, Revival of KPCU to help avoid milling losses and eradicate grading frauds and revival of Coffee Society Foundation to aid farmers in research analysis.

The DP also assured the farmers that the Kenya Kwanza government is prepared to engage in a fight against all cartels involved in the sabotage of the coffee sub-sector.

He prepared the stakeholders that the fight may accrue some pain for them but promised a beautiful solution in the end.

“What I want to assure you, when the president said we do these reforms, we knew the war will be tough and we must be prepared. I will hold the cartels by the neck, will you bear the kicks? The DP challenged the farmers as he said that the cartels might fight back and the farmers must be ready.

Gachagua advised farmers to tighten their belts for about a year and half as they face off coffee market intermediaries.

The Deputy President stressed on changes in the co-operative sector leadership citing that the societies officials have been conflicted by marketers.

The DP tipped off a recent disagreement between the co-operatives officials who opposed the governments’ plan on purchase of cheap fertilizer.

Gachagua urged farmers to ignore the varied co-operative officials and purchase the subsidized Sh.2500 fertilizer for farmers which is readily available in the market.

“Recently, we provided Sh.3, 500 fertilizer for the coffee sector, society officials said they will buy the Sh.7, 000 fertilizer because they have a commission. Farmers, when society officials tell you to buy fertilizer at Sh.5, 000 do not accept because we have fertilizer for Sh.2, 500 that is subsidized by the government.” Gachagua said

The DP suggested that, while looking forward to amending the coffee act they will also consider reforms on the co-operative act to create reliable governance in the co-operative societies.

Courtesy ; K. N. A