KENYA – The New Kenya Planters Cooperative Union (New KPCU) has advanced KES125.2 million (US$972,427.17) in cherry fund loans to benefit 9,011 coffee growers across 11 counties.  

The disbursement, made between September 9 and September 16, 2024, was allocated to eleven coffee cooperative societies to help farmers nurture their coffee trees and boost production. 

Daniel Kiprotich, Chairman of New KPCU, highlighted the swift release of the funds to ensure farmers have timely access to resources needed to support coffee cultivation. 

He noted that the funds were shared among coffee growers in counties such as Baringo, Bungoma, Embu, Kericho, Kiambu, Kirinyaga, Kisii, Machakos, Meru, Trans Nzoia, and Nyeri. 

Nyeri County received the highest allocation of KES70 million (US$543,689.31), benefiting 3,007 farmers. 

Kiprotich emphasized the importance of these funds in supporting both smallholder coffee estates and individual growers. He added that over the past two years, farmers have effectively utilized the funds to enhance coffee production and improve quality. 

Field officers from New KPCU visit farmers in the respective counties to recommend the release of funds, which are tied to the number of kilogrammes of cherry delivered for processing at various coffee factories. 

Since the inception of the Cherry Fund, more than KES5.4 billion (US$41.9M) has been disbursed to 399,248 farmers in 26 counties.  

Nyeri County has been the largest beneficiary, receiving KES816.7 million (US$6.34M) for 77,565 farmers, followed by Machakos with KES621 million (US$4.8M) for 48,338 growers. 

The Cherry Fund, established by the government with an initial capital of KES3 billion (US$23.3M), aims to revive the coffee sector, which has experienced a decline despite being a key foreign exchange earner.  

Meanwhile, the Nairobi Coffee Exchange (NCE) has implemented new trading rules to address malpractices, including the full implementation of the DSS and the introduction of an auction levy for coffee transactions. 

The Direct Settlement System (DSS), managed by Co-op Bank, has streamlined payments to farmers, with over KES1.5 billion (US$11.65M) disbursed in the 2023/24 coffee year alone. 

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