Cherry fund,
Some 4,906 coffee farmers drawn from various cooperative societies have benefited with loans from the Coffee Cherry Fund totaling to Sh. 61.9 million in a record eight days.
According to reports by New Kenya Planters Cooperative Union (NKPCU) the money was disbursed to the farmers drawn from 15 counties between August 5 and 12. In the reports seen by KNA, Machakos county took the lead where 2, 718 farmers benefited with cherry fund amounting to Sh. 26.2 million.
Since the establishment of the Cherry Advance Fund back in 2021, Sh. 5.1 billion has been advanced to farmers through NPKCU. The government through the Ministry of Cooperatives has been encouraging farmers to source cheap loans from the fund which is meant to cushion them from expensive credit facilities from commercial financial institutions.
Deputy President Rigathi Gachagua in his recent campaigns in parts of central Kenya aimed to reform the coffee sector has been challenging farmers to take advantage of the subsidies the government is putting in place to boost coffee quality and production.
Taking advantage of the cherry fund, the deputy president explains, will relieve cooperative societies from indulging in heavy debts which usually leave farmers with meager earnings. From the Sh. 5.1 billion disbursed to farmers since five years ago, Machakos County has benefitted with Sh. 569.4 million shared among 45,426 farmers.
NKPCU Chairman Daniel Kiprotich, when contacted via phone call revealed that there has been an upward trajectory on cherry fund uptake among the cooperative societies and estates noting between July 22 and July 29 a total of Sh38.2 million had been disbursed to 1,919 growers spread in 14 counties.
Kiprotich explained that the government is working through various strategies aimed at reviving the coffee sector through the provision of subsidies. “Currently we are witnessing an increase in coffee production and quality due to subsidies given by the government and where coffee was not grown before, farmers are embracing the crop,” said the chairman.
Farmers allied to various cooperative societies in Murang’a within the period under review applied for Sh5.3 million, Nyeri Sh9.2 million, and Meru Sh4.5 million and those in Kiambu got an allocation of Sh4.5 million.
In Kirinyaga County, only farmers affiliated with Ngiriambu Cooperative Society applied for Sh.5.3 million from the cherry fund.
According to the data from NKPCU, in Machakos, out of the disbursement of Sh. 26.2 million, Sh.14.3 million was channeled to 1,411 farmers affiliated to Muthunzuuni cooperative society at a rate of Sh.40 per kilo of coffee they had delivered for processing.