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- The World bank has sanctioned Sh1.5 billion to Kenya to improve the production of specialty coffee
- Almost 60 percent of the funds is allocated for the automation of co-operative processes and modernisation of the equipment
Kenya’s Coffee sector is poised to get a big boost from World Bank support. The World Bank has sanctioned Sh1.5 billion to Kenya to improve the production of specialty coffee. The funds will be initially disbursed to eight counties that account for more than 70 percent of the national coffee production. The first phase will cover Muranga, Kiambu, Meru, Tharaka Nithi, Machakos, Kirinyaga and Nyeri counties. Almost 60 percent of the funds is allocated for the automation of co-operative processes and modernisation of the equipment.
Launching the scheme, Agriculture Secretary Peter Munya said that the money would be issued to select co-operative societies. These co-operative societies have to support farmers with seeds and subsidised fertiliser to improve productivity. A portion of these funds will be used to improve marketing. One important goal of the project is to eliminate the cartels by sourcing the market for farmers to enable the direct sale of their produce at the best prices. Currently, Kenya sells more than 95 percent of its coffee at the global market through auction at the Nairobi Coffee Exchange, with only a 12 percent window for direct sales. The World Bank project, which would be rolled out by September, is expected to raise productivity from the current 40,000 metric tonnes annually to more than 100,000 metric tonnes.
Declining volumes and depressed prices at the auction had impacted Kenya’s Coffee earnings which dropped by Sh2 billion at the end of February compared with the same time last year. A Coffee Sector Implementation Committee was already constituted by President Kenyatta to formulate the national coffee policy. Last week the term of the Committee chaired by Prof Joseph Kieyah was extended by one more year to enable it to finalise the national coffee policy.
