Coffee buyers to pay 2pc research levy

The levy will be apportioned between the Coffee Board of Kenya, the Coffee Research Institute and county governments for development of the crop.

“The levy imposed under subsection (2) shall be apportioned as follows— 1 percent to the Institute, 0.5 percent to the Board for regulatory and coffee promotion purposes, and 0.5 percent to the coffee growing County Governments for coffee development as conditional grants,” Prof Joseph Kieyah said in a memorandum on the Senate sponsored Coffee Bill 2020.

Official data from the government shows that Kenya last year produced 24,416.4 metric tonnes of coffee which was sold at an average price of Sh452.56 per kilo, netting Sh11billion from sales.

This means that the Coffee Board of Kenya will receive more than Sh221 million annually, being two percent of the Sh11 billion, for coffee development.

The presidency, through the Coffee Sub-Sector Reforms Implementation Standing Committee (CSRISC) chaired by Prof Kieyah, seeks to empower the Agriculture Cabinet Secretary (CS) to impose the levy.

The the Senate committee on Agriculture chaired Njeru Ndwiga (Embu) had invited CSRISC to submit comments on the Coffee Bill, 2020.

CSRISC, chaired by Prof Kieyah was appointed by President Uhuru Kenyatta to coordinate, oversee and monitor the implementation of the coffee subsector reforms.

CSRISC is the successor of the Coffee Sub-Sector Implementation Committee which spearheaded the formulation of the Crops (Coffee) (Regulations), 2019 and the Capital Markets (Coffee Exchange) Regulations, 2020.

Prof Kieyah criticised the Agriculture CS Peter Munya for introducing a parallel Coffee Bill, 2021 in the National Assembly.

He said the Munya led-Bill reintroduces the role of coffee marketers which regulations scraped.