Machakos County Governor Wavinya Ndeti has appealed for a debt waiver of Kes603 Million owed to Coffee cooperative societies in the county.
Governor Ndeti who hosted the Cabinet Secretary Cooperatives and Micro, Small and Medium Enterprises Hon. Simon Chelugui at the launch of Coffee Cherry Advance Fund in Kangundo on Tuesday said farmers in the region needed the waiver in order to start on a clean slate.
Ms Ndeti said the debt was small compared to what the national government had waived to farmers in other regions.
The governor also asked the national government to reconsider plans to tax coffee farmers adding that farmers were already burdened with high costs of inputs.
Mr Chelugui said the government had now embarked on serious reforms of the coffee sector including the Coffee Cherry Advance Fund,re-establishment of the Coffee Board of Kenya and licensing of 14 unions to represent coffee farmers.
He said farmers were now assured of getting at least Kes80 per kilogram of coffee through the Cherry Advance Revolving Fund.
“We are paying Kes40 on arrival at the factory and a further Kes40 on arrival at the mill and this is not a loan. Payment is guaranteed one month after harvesting,” said Mr Chelugui.
He said when the price change farmers will get a bonus.
Farmers will also be free to decide whether to be paid in dollars or in shillings through the Direct Sales Settlement so as to avoid being duped by brokers, the CS said.
