The government has adopted a comprehensive approach to bolster the entire agriculture value chain.
According to a statement from Government Spokesperson Isaac Mwaura, this approach is part of its commitment to revitalizing the agriculture sector.
“Our investment of Ksh.267.7 billion in nine key value chains for
the fiscal year 2023/2024 demonstrates our dedication to driving the Bottom-up transformation agenda,” Mwaura says in a statement to newsrooms.
Mwaura says that the government has recognised the pivotal role coffee plays in the country’s economic growth and its significant support to over 5 million Kenyans involved in the whole coffee value chain.
“We’ve undertaken strategic initiatives to enhance production. To address the decline in coffee production caused by price volatility and high production costs, the government has taken decisive steps which will see our coffee production increase from the current 51.000 MT to over 100.000 MT by 2025,” Mwaura adds.
The government, the circular says, has disbursed KSh6 billion to coffee farmers to bolster the Coffee Cherry Advance Revolving Fund distribution and implement a comprehensive coffee production sensitization program.
Starting tommorrow (Wednesday, January 10), the distribution will target Machakos, Kajiado and Taita Taveta counties (at Kagundo Kainga Stadium, while on 11th January Nyeri County (Karatina Stadium), Kirinyaga County (General Kassam), and Murang’a (Ihura Stadium).
Guaranteed Minimum Return
“This will ensure a Guaranteed Minimum Return (GMR) of KES 80 per kilo of coffee cherry, up from the previous non-guaranteed price of KES 60.”
The government insists that any surplus revenue generated beyond this guaranteed minimum price will be distributed to the farmers as coffee cash bonus.
“This landmark distribution started in Makueni County this morning and will extend to all 37 coffee-producing counties nationwide… spearheaded by the Ministry of MSME& Cooperative Development,” Mwaura assured.
Furthermore, Mwaura says the government has significantly increased the allocation to the Agricultural Financing Corporation, from KSh2 billion to KSh10 billion. This augmentation is aimed at providing farmers with access to credit at single-digit interest rates.
“These funds will further alleviate the production costs and bolster productivity in the coffee sector. Through these strategic interventions and substantial investments, we aim to not only revive the coffee industry but also empower our farmers, ensuring sustainable growth and prosperity within the sector.”
