New KPCU unveils plan to double farmers’ earnings by 2027
KENYA – The New Kenya Planters Cooperative Union (New KPCU) has announced plans to increase coffee farmers’ earnings from the current Kes70 (US$0.54) per kilo to at least Kes135 (US$1.04) per kilo by 2027.
This goal is outlined in the cooperative’s recently released 2023–2027 strategic plan, which also aims to significantly boost the cooperative’s revenue and market share.
The Kes7.9 billion (US$61.1M) strategic plan allocates Kes4.4 billion (US$34M)—56% of the budget—for coffee milling and warehousing.
The key components of the strategy include evamping old warehouses and forming public-private partnerships (PPPs) aimed at improving farmers’ returns and enhancing operational efficiency.
“More modern warehouses mean more farmers bringing their coffee, which will translate to better bargaining power when dealing with buyers, resulting in higher earnings,” the strategic plan states.
To fund the ambitious plan, New KPCU expects financial support from the Exchequer under the Medium-Term Expenditure Framework (MTEF) but acknowledges that these funds may be insufficient.
The cooperative plans to seek additional resources, mobilize funding from development partners, and increase internal revenue to address the gap.
Additionally, it will continue to leverage PPPs to ensure the successful implementation of its initiatives.
The growth in farmers’ earnings will be phased, increasing from Kes70 per kilo to Kes85 (US$0.66) in 2024, Kes100 (US$0.77) in 2025, Kes120 (US$0.93) in 2026, and finally Kes135 (US$1.04)in 2027.
Similarly, New KPCU projects its revenue to grow from Kes135 million to Kes600 million by the end of the plan, with incremental targets set for each year.
The strategic plan also highlights key focus areas beyond milling and warehousing. These include agronomy and technical support, coffee marketing, the Coffee Cherry Advance Revolving Fund (CCARF), company revenue generation, and institutional capacity building.
By 2027, New KPCU aims to increase its market share from 3 percent to 14 percent, disburse and recover Kes6 billion annually through CCARF, and digitize 100 percent of identified company services and processes.
Since its establishment, New KPCU has disbursed over Kes1 billion (US$7.7M) under CCARF, benefiting more than 90,000 coffee farmers.
The cooperative has also achieved a 300 percent increase in coffee milling and marketing volumes and supported over 7,000 farmers through a coffee farming inputs subsidy program.
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