There is a clamour for appointment of a second Bank to provide Direct Settlement System (DSS) to satisfy the expanding coffee sector in Kenya.
As the farmers prepare for the second year under the coffee regulations of 2019, the stakeholders say there is dire need for the regulators in the industry, Nairobi Coffee Exchange (NCE) and Capital Markets Authority (CMA) to provide them with alternatives.
The growers allied in the cooperatives and estates indicate their suffering under the DSS controlled by the Cooperative Bank coupled by delayed payments and lack of information. In May this year, when the NCE conducted farmers sensitisation forums in the coffee belts, the farmers expressed reservations on the performance of the DSS calling for appointment of other players in the banking sector to offer the services.
Rachel Momonyi and Joyce Nyambura from Kisii and Murang’a counties respectively say the payment system in the sector remains well thought of but farmers are denied opportunity to make decisions.
Momanyi said it was the best time for the farmers to evaluate the performance of the DSS in the first year. ” As we proceed to the second year we demand the government initiate a process to recruit another player,” said Momanyi, a member of a cooperative society.
Nyambura, a farmer in Kiambu, accused the government of having failed to allow appointment of three players to handle and disburse the farmers finances. ” As we cross to the second year on October 1, the farmers seek the government to recruit another DSS player,” said Nyambura.
“We are tired of a single institution providing services we need more than four to enable the farmers to have the alternative,” said James Moiben from Kericho county.
Moiben, an estate farmer, says Kenyan farmers are yet to get the financial freedom as the DSS facility needs to be expanded to other players, to enhance transparency. Francis Muthui, a farmer Kangunu farmer soiciety in Mathioya, says the impact of coffee reforms has not been felt owing to several bottlenecks in the regulations thus need for an additional player for checks and balances.
At the society, he reveals the details on DSS new to the members as the management committee safeguard information pertaining payment rates. “The farmers need to be free and have access to information pertaining to his finances, The DSS has been a major let down in the industry thus needing for recruitment of other players,” said Muthui.
Kenya Coffee Producers Association Chairman Peter Gikonyo pleads with the government to consider recruiting three other players to provide the DSS services in the lucrative coffee sector. Gikonyo said the DSS platform needs to be enhanced to provide effective services to the farmers and the government to achieve the results.
” There is a big gap between DSS and the estate farmers who have been claiming to have been left out,” said Gikonyo. Harrison Chege, chairman at Gatagua farmers’ Cooperative Society, says the DSS should be scrapped as it has failed to add value to coffee farming.
‘The facility is a mere rip off as the farmers’ proceeds should be credited directly in the accounts after the sale is completed.’ said Chege. He adds that in most of the times remittance of proceeds from the DSS to the society bank accounts take longer.
” Gatagua society sold its coffee when the dollar rate was exchanged at Sh130, but we got less money,” said Chege.