Coffee
Farmers from the coffee growing regions have called on the national and county governments to join hands in subsidizing the cost of soil testing for them. The farmers highlighted that in the absence of soil testing, they are applying inappropriate fertilizers that acidify the soil and lead to poor production.
Kenya Coffee Producers Association (KCPA) chairman Peter Gikonyo said that soil testing will lead to procurement of coffee specific fertilizer such as NPK 22:6:12 as he also advised the government to include coffee specific fertilizer into the subsidy programme.
Speaking in Nairobi on Monday during a media briefing, Gikonyo called on the government to look into the issues of delayed payments to the farmers from the Direct Settlement System (DSS). He explained that DSS was meant to ensure that all growers receive proceeds from the sale of their coffee which is done in dollars directly into their accounts.
“While DSS was supposed bring efficiency in settlement of coffee proceeds, it has caused untold suffering to coffee farmers such as unexplained delays in settlement of growers, unexplained partial settlements, payment to the wrong accounts, recalling payments from growers, unauthorized change of grower’s code and bank accounts and loss in exchange rate occasioned by the delays,” said Gikonyo.
He explained that some of the unexplained settlement delays date back from sale 10 done on December 19, 2023, to sale 20 done on March12, 2024. “According to the Crops Coffee General Regulation 2019 and Capital Market Coffee Exchange 2020 and Nairobi Coffee Exchange Trading Rules 2023, settlement is supposed to be paid five days from the date of sale,” explained Gikonyo.
He said that DSS was meant to settle the growers account as soon as the buyers pay and not to hold any money. Gikonyo said that farmers are suspicious of the dealing and called upon the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) to investigate DSS offered by Cooperative bank of Kenya to ensure coffee farmers do not lose their hard-earned dollars.
“We also request the office of the Ombudsman step in and ensure that farmers get justice,” said Gikonyo.
He at the same time called on county governments to consider the plight of coffee farmers and license the qualified coffee mills which will address the unwarranted delays in milling caused by capacity constraint.
“Some counties do not have a single private mill to serve the many small and medium estate farmers who must use a mill for coffee presentation for auction,” said Gikonyo.