Anxiety has greeted the coffee sector after President William Ruto unveiled plans to write off Sh billion in debt to relieve the coffee farmers.
The move by the state is aimed at rejuvenating the struggling sector with more than 650,000 farmers. The President spoke when he addressed Kenyans residing in the United States and said his administration will write off debts valued at Sh6 billion to enable the growers to increase their production.
“In the next Cabinet meeting, we will approve a write-off of Ksh6 billion to our farmers, so that we can reduce debts on coffee farming,” said Ruto. Coffee is one of the major income earners with 75 percent of the farmers rated in the small-scale category.
According to the agriculture experts, the coffee sector has struggled with low production and financial instability. The debt relief plan, initially proposed in January by Co-operatives Cabinet Secretary Simon Chelugui, was supported by Deputy President Rigathi Gachagua when he toured coffee growing areas.
Farmers cooperatives have submitted details pertaining their debts to the Ministry awaiting the same to be analysed by the auditors.
In 2010, the late Mwai Kibaki administration allocated Sh4.7 billion coffee debt waiver to the saving and credit saccos , which relieved the coffee sector with farmers getting their proceeds without deductions.