Waiguru urges Gov't to waive Ksh.1 billion debt owed by Kirinyaga coffee cooperatives

Speaking during a coffee farmers’ sensitisation forum at General Kassam Grounds, Waiguru said clearing the long-standing debts would allow cooperatives to invest more in production and improve returns to farmers.

“Debts owed by our cooperatives to financial institutions weigh heavily on our farmers, and we appeal for the fast-tracking of debt waivers, which would be a major boost to coffee farmers in Kirinyaga,” she said.

The affected cooperatives are Karithathi, Rung’eto, Thirikwa, Ngiriambu, Rwama, Kanjuu, Mirichi, Inoi, Kibirigwi, Mwirua, Mutira, New Ngariama, Baragwi and the Kirinyaga Cooperative Union.

Waiguru said addressing the debt burden would complement ongoing reforms and investments aimed at improving the coffee value chain in the county.

Cabinet Secretary for Cooperatives and MSME Development Wycliffe Oparanya, who attended the event, said his ministry had received Ksh.6.8 billion in verified debt waiver requests from cooperative societies across the country.

He said the government has so far been allocated Ksh.2 billion to settle part of the claims, adding that Kirinyaga’s request would be considered.

Oparanya, however, urged farmers and cooperative members to ensure the debts under consideration were legitimate.

He said the government remains focused on boosting coffee production nationally, noting that coffee remains a major foreign exchange earner and that efforts are underway to raise production to at least 150,000 metric tonnes.

Waiguru said coffee production in Kirinyaga has increased from 28,000 metric tonnes in 2017 to 48,000 metric tonnes, while annual earnings to farmers have risen to about Ksh.7.4 billion.

She attributed the growth to county interventions targeting production, processing, storage, marketing and value addition.

“Kirinyaga coffee is our pride and a legacy crop that continues to transform livelihoods. Our goal is to ensure that farmers derive maximum value from their produce by strengthening every stage of the value chain,” she said.

She noted that Kirinyaga continues to be recognised for producing premium Arabica coffee, citing the performance of Kii Coffee Factory under the Rung’eto Farmers’ Cooperative Society, whose AA-grade coffee sold at Ksh.1,715 per kilo in 2023, the highest price recorded in Kenya in five years.

Waiguru said the county has been supporting farmers with subsidised seedlings through Kamweti Nurseries, where improved planting materials are being produced to help rejuvenate ageing coffee bushes and increase yields.

She said the county produced 120,000 Ruiru 11 grafted seedlings this planting season, which were sold to farmers at Ksh.55 each, compared to Ksh.100 in private nurseries.

She added that the county has also continued to provide extension services to support better agronomic practices, pest and disease control, and improved post-harvest handling.

To improve processing and reduce losses, the county has allocated Ksh.36 million this financial year for the modernisation of wet mills in seven coffee factories through the installation of solar-powered eco-pulping machines.

According to the governor, the technology is expected to improve efficiency, reduce processing costs and enhance bean quality. The county is also supporting the use of solar dryers to improve consistency in drying and preserve coffee quality.

In post-harvest infrastructure, Waiguru said the county is constructing a Ksh.27 million warehouse at the Kirinyaga Coffee Farmers’ Cooperative Union in Kimicha, which is currently 90 per cent complete.

Once completed, the warehouse is expected to store up to 40,000 bags of parchment coffee, helping address storage challenges, improve quality control and strengthen farmers’ bargaining power.

Waiguru also pointed to gains made in coffee marketing through support for the Kirinyaga Slopes Coffee Brokerage Company, which she said has helped local farmers gain more control over the sale of their coffee.

“Since receiving its brokerage licence, the company has facilitated the sale of 298,247 bags of parchment coffee worth Ksh.10.5 billion, positioning Kirinyaga strongly at the Nairobi Coffee Exchange,” she said.

She said the county is also investing in value addition to create more income opportunities for farmers, youth and women.

Under the initiative, Mutira and Mwirua cooperative societies have received coffee roasting machines, enabling them to process and market branded coffee under Tira Coffee and Mwirua Coffee.

The governor said the products are already being sold locally, helping expand domestic consumption and create new enterprise opportunities around coffee.

During the forum, local leaders and coffee sector stakeholders also raised concerns over the proposed Direct Sale System, saying farmers in Kirinyaga prefer to continue selling coffee through their cooperatives.

Kirinyaga Central MP Gachoki Gitari told the CS that farmers in the county were opposed to the proposal, arguing that local cooperatives are well managed and capable of handling payments to members.

Other leaders and cooperative officials who spoke at the event welcomed the government’s support for the coffee sector, while reiterating calls for the debt waiver to ease pressure on societies and improve production.