KENYA – In a bold move to revamp Kenya’s agricultural sector, President William Ruto announced the cancellation of Ksh110 billion (US$841.36M) debts owed by sugar factories and Ksh6.9 billion (US$52.78M) by coffee cooperatives.
The announcement was made during the 61st Madaraka Day celebrations in Bungoma, highlighting a comprehensive plan to revitalize the sugarcane and coffee industries.
President Ruto introduced a new leasing model to ensure prompt payments for cane deliveries, timely wages for factory workers, and annual bonuses for sugarcane farmers.
“The sugar industry is a highly strategic sub-sector that has been the mainstay of local economies in our sugar belt. We are committed to ensuring it returns maximum value to all actors, beginning with the cane grower,” he emphasized.
The President called on relevant agencies to expedite the review process and include proceeds from by-products in the industry. Additionally, he announced the approval of an initial Ksh600 million for seed cane development, part of a larger Ksh2 billion (US$15.3M) investment plan.
In addressing the coffee sector, Ruto outlined measures to boost production from 2 kg to 10 kg per tree and increase annual output from 50,000 metric tons to 102,000 metric tons by 2027.
He highlighted the establishment of a Ksh4 billion coffee cherry fund, with Ksh2 billion (US$15.3M) already paid and the remainder allocated for the 2024/2025 financial year. “This will ensure farmers get good returns for their investments,” Ruto stated.
The President noted, “Agriculture’s direct contribution to our GDP is 25 percent, while its indirect support to other economic pillars such as manufacturing boosts the GDP by 27 percent. Agriculture also employs, directly or otherwise, an estimated 40 percent of our population.”
Additionally, Ruto announced the development of a comprehensive database for farmers and entrepreneurs. This initiative aims to improve access to information, enabling farmers to obtain low-cost farm inputs and access ready markets for their produce.
In November 2023, Deputy President Rigathi Gachagua revealed that the government was finalizing modalities for releasing the enhanced coffee cherry advance revolving fund to farmers.
The government has allocated an additional Kes4 billion (US$30.6M) to the fund, supplementing the Sh2.7 billion (US$20.65M) provided earlier, ensuring that deserving farmers benefit.
The Coffee Cherry Fund, established in 2019, is part of broader government efforts to revitalize the coffee sector and provide financial support to farmers.
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