Kenyan government allocates US$143K to revive dormant Kimuri Coffee Factory 

KENYA – The Kenyan government has announced a Kes18.5 million (US$143K) investment to revive the dormant Kimuri Coffee Factory in Kairi Village, Murang’a County.  

The initiative is part of President William Ruto’s broader strategy to sustain development projects and strengthen the coffee sector in the Mt. Kenya region. 

Cabinet Secretary for Cooperative Development, Wycliffe Oparanya, confirmed that the funds will be allocated in the next financial year, beginning June 2025. “Part of these funds will be used to support the revitalization of the operations of the Coffee Cooperative Society,” he said. 

According to a statement submitted to the Senate, Oparanya noted that the factory requires essential infrastructure upgrades, including drying tables, electricity reconnection, and coffee pulping machinery.  

The government has pledged to reconstruct or service these facilities as needed to restore the factory’s operational capacity. 

Beyond financial support, the government will facilitate fresh elections to reconstitute the management committee, provide training for the newly elected leadership, and raise awareness among coffee farmers on the benefits of working within the cooperative. 

Additionally, the government will ensure the restoration of electricity supply to both the factory and farmers within the catchment area. 

Kimuri Coffee Factory, owned by Kimuri Farmers Cooperative Society Ltd, is among several factories in the region that have ceased operations due to financial and structural challenges.  

Other factories linked to the Iyego Co-operative Society have transitioned into collection centers to cut costs amid declining production. 

Several other coffee factories in the broader Mt. Kenya region are also struggling with reduced output. Industry experts attribute these declines to poor payment structures, high input costs, and governance challenges. 

Kimuri Coffee Factory became dormant after its cooperative society split from the larger Njora Farmers Cooperative Society Ltd. The separation led to unsustainable operations caused by a declining membership, reduced coffee production, and ineffective governance. 

Earlier this week, President Ruto highlighted his administration’s efforts to improve coffee payment timelines, reducing the waiting period from six months to five days for cooperatives. By June, he plans to ensure that payments are made directly to farmers within five days.  

“The coffee used to be paid after six months; today, it is paid after five days to cooperatives. My plan by June is that the money will not be paid to cooperatives; it will be paid to the farmer after five days. The price of coffee has risen to Kes 110,” Ruto said. 

Between October 2024 and February 2025, coffee factories auctioned 375,843 bags, weighing 22,528,988 kg, at the Nairobi Coffee Exchange (NCE).  

The coffee generated Kes19.3 billion (US$149.3M), with a 50 kg bag selling at an average price of Kes42,885 (US$331.8). 

NCE CEO Lisper Ndung’u noted that the market has performed well, with high-quality coffee fetching premium prices. She encouraged farmers to follow guidance from agricultural officers to enhance their earnings. 

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