KENYA – Kenyan coffee farmers, represented by the National Coffee Co-operative Union (NACCU), are urging the government to step in and halt the issuance of milling licenses to entities holding buying permits.
This plea arises amidst fears that certain “cartels” within the industry are working to undermine state-led reforms, particularly by disrupting farmers’ direct access to auctions.
NACCU has expressed alarm over the licensing of commercial millers, citing instances where county governments have issued permits to entities affiliated with buyers.
Notably, Kiambu County has granted licenses to Sasini Plc Millers and Kofinaf Company Limited, both linked to entities holding buying licenses.
According to NACCU, Sasini Plc Mill is affiliated with Sasini (K) Ltd who holds a buyers licence issued by the Agriculture and Food Authority (AFA) and have actively been participating in the auction as buyers.
Kofinaf Company Limited mill is affiliated to Coffee Management Services (CMS) and C.Dorman Limited, who handed over their management to CMS, a sister company to C.Dorman who are licensed as buyers.
Such actions, according to NACCU, violate regulations set forth in the Crops (Coffee) (General) Regulations 2019.
Festus Bett, CEO of NACCU, condemned these actions as “high-level impunity” and called upon Deputy President Rigathi Gachagua to intervene.
The union seeks the suspension of coffee buying licenses and activities of Sasini (K) LTD and C. Dorman, pending an inquiry into the licensing process.
Moreover, NACCU has urged the Kenya Coffee Producers Association (KCPA) to refrain from obstructing government-led reforms.
Previously, KCPA had cited delays in payments stating; “Some of the unexplained settlement delays date back from sale 10 done on December 19, 2023 to sale 20 on March 12, 2024.”
However, NACCU countered these claims, attributing recent changes to the Capital Markets Authority’s oversight and collaboration with relevant government bodies.
In response to increasing concerns, Cooperatives and MSME Development CS Simon Chelugui reaffirmed the government’s commitment to coffee sector reforms spearheaded by Deputy President Gachagua.
The Deputy President has been firm in his stand against “cartels,” vowing to restore dignity to farmers and enhance the profitability of the coffee industry.
“Dignity of farmers who toil in their farms only to reap peanuts from their produce will be returned and coffee made the black gold that it was for years,” Gachagua recently said.
The urgency for government intervention stems from the deep-rooted influence of cartels not only in coffee but across various agricultural sub-sectors.
George Nduati, a coffee farmer in Kiambu, highlighted the detrimental impact of cartel activities, citing inflated prices for essential inputs like fertilizer.
“Last year Government fertiliser was available at Kes3500 (US$26.93) but because of cartels we have been forced to pay Kes5000 (US$38.46),” he indicated.
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