Beginning July, coffee farmers across Kenya will start receiving their payments through a centralized system via Co-operative Bank. This new payment structure is part of a broader government reform aimed at eliminating corruption within coffee cooperative societies.
Addressing in Bungoma Oparanya emphasized that this reform is a decisive step toward ensuring transparency and protecting the earnings of coffee farmers.
“Coffee farmers have long been exploited by dishonest individuals within cooperative societies. By channeling payments through Co-operative Bank, we aim to close those loopholes and ensure that farmers receive what they truly deserve,” Oparanya stated.
Under the new model, farmers will be paid sh40 per kilogram of coffee delivered to their respective societies, of this amount 80 percent will go directly to the farmer, while 20 percent will be retained by the cooperative society.
“The 20 percent allocated to the cooperatives will be managed by society leaders, who will determine how to best utilize it, be it for operational costs or community projects. After these obligations are met, societies can use any surplus to reward farmers in the form of bonuses,” Oparanya explained.
He urged farmers to open accounts with Co-operative Bank to facilitate timely and accurate payments, though he added that the government is in talks with other banks to expand access.
“We are currently in discussions with Kenya Commercial Bank (KCB) and Family Bank to ensure farmers in all regions can easily access financial services. The goal is to remove barriers to payment and improve service delivery,” Oparanya noted.
He also encouraged farmers to increase their productivity, highlighting the rising global demand for coffee.
Oparanya appealed to older farmers to actively involve young people in coffee farming in order to preserve knowledge and sustain production into the future.
“We’re seeing a major opportunity in global markets. But to fully tap into it, we must ensure young people are engaged and skilled in coffee farming,” he said.
The Cabinet Secretary also revealed plans to upgrade a coffee milling facility in Bungoma, which would enable full cycle processing of coffee locally.
He said this would help reduce the high costs currently incurred when importing processed coffee.
“It doesn’t make sense for us to grow the coffee, export it raw and then buy it back at triple the cost once it’s processed abroad. With a modern milling machine in Bungoma, we can add value right here and increase our earnings,” he noted.
The government, he added, is also focused on rooting out cartels that have long dominated the coffee industry.
“We are determined to clean up the sector. Soon, all coffee societies will be required to elect new, dedicated leaders who can represent the interests of farmers,” former governor stated.
Also present at the launch event were Bungoma Deputy Governor Jenipher Mbatiany, Senator Wafula Wakoli and former Governor Wycliffe Wangamati among other leaders.
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