Gov’t to pay only verified coffee farmers’ debts: CS Oparanya says

Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has announced that the government will only pay verified and audited debts owed by coffee cooperative societies across the country, as part of ongoing reforms in the sector.

CS Oparanya revealed that a comprehensive audit of coffee societies’ liabilities established that only Ksh.6.2 billion out of the claimed debts is legitimate and eligible for settlement. He cautioned that any debts not captured in the verified audit will not be honoured by the government.

“Any cooperative society whose debt is not reflected in the audited report will have to resolve those obligations internally, through their management committees and farmers,” he said.

Speaking at Karuri Grounds during a meeting with coffee farmers, the CS confirmed that the government has already begun settling the verified debts, with Ksh.2 billion set aside in the initial phase of payments.

At the same time, Oparanya underscored that broader coffee sector reforms are aimed at improving both quality and efficiency.

He announced a policy shift that will bar cooperative societies from procuring their own milling machines.

Instead, milling services will be centralised under the Kenya Planters Cooperative Union (KPCU), which will offer the services at more affordable rates.

He also highlighted the role of the government-backed cherry fund, noting that it is already enabling faster payments to farmers, within five days of delivery.

Additionally, the fund is expected to provide farmers with access to low-interest credit, reducing reliance on commercial bank loans that often prove costly.

The reforms form part of the government’s broader strategy to streamline operations in the coffee value chain, enhance farmer earnings, and restore the sector’s productivity.