Ruto's Cabinet Writes Off Ksh6.8B Debt For Coffee Farmers
The resolution was reached following a meeting of the Cabinet at State House, Nairobi which sanctioned the write-off of historical debts amounting to the billions owed by coffee farmers nationwide.
Marvin Chege 
President William Ruto on Tuesday, June 11 considered and approved the debt waiver for coffee farmers and other coffee sector reforms amounting to Ksh6.8 billion.
The resolution was reached following a meeting of the Cabinet at State House, Nairobi which sanctioned the write-off of historical debts amounting to the billions owed by coffee farmers nationwide.
"In a bid to pivot the economy towards a sustained turnaround as set out in the Bottom-Up Economic Transformation Agenda (BETA), Cabinet considered and approved a debt waiver for coffee farmers and other coffee sector reforms.
"Under this programme, the meeting sanctioned the write-off of historical debts amounting to Ksh6.8 billion owed by coffee farmers nationwide," a despatch from the meeting read in part.
A file photo of a coffee farm under the Kapkulumben Coffee Farmers Cooperative Society in Nandi Hills, Kenya. /NILE SPRAGUE
Furthermore, to facilitate the settlement of debts accrued by farmers, coffee cooperatives, saccos, and other creditors have been directed to submit to the Ministry for Cooperatives, within seven days, a list of all farmers who owe them money, along with all supporting documents for verification and processing of payment.
The Cabinet warned that "any fraudulent or fictitious claims will be dealt with in accordance with the law."
The Cabinet also called on Parliament to fast-track the enactment of corporate governance reforms for cooperatives to establish institutional safeguards that will enhance accountability and transparency, including the requirement that the process of borrowing by cooperatives henceforth is only authorised by farmers during annual or extraordinary general meetings.
"To further bolster the coffee production value chain, the New Kenya Planters Cooperative Union (KPCU) will undergo modernisation in accordance with international best practices," added the statement.
Additionally, to address the concerns on the quality of coffee parchments, the Cabinet announced that modern eco-pulpers will be established in all emerging coffee growing areas for primary processing, enhancing efficiency and sustainability of the sub-sector.
These interventions, which will additionally encompass improved coffee seedlings propagation under the Coffee Research Institute (CRI) are aimed at enhancing the production of coffee to the 200,000 metric tonnes target by 2027.
The reforms are also expected to reposition Kenya's coffee on the global stage.
This will enhance the competitiveness of Kenyan coffee and its contribution to the national development agenda, as coffee remains one of the nation's premier exports.
