Nyeri, Kiambu top Sh2.9 billion coffee cherry fund beneficiaries

KPCU Managing Director Timothy Mirugi. FILE PHOTO | NMG

Farmers from Nyeri and Kiambu counties are the biggest beneficiaries of the first Sh2.9 billion tranche of the Sh4 billion disbursements through the Coffee Cherry Advance Revolving Fund.

The Sh2.9 billion payout has benefited 221,382 farmers across 24 counties.

Nyeri accounted for about 30 percent (65,252) of the farmers, data compiled by the New Kenya Planters Co-Operative Union (KPCU) shows. The county also accounted for 18.7 percent of the funds released in the first lot, getting Sh552.3 million.

Some 6,312 farmers from Kiambu County received Sh294 million (an average of Sh46,623 per farmer).

Others include Kisii whose 1,932 farmers will collectively get Sh51.5 million, Machakos (21,970 farmers to get Sh238 million), Meru (7,542 farmers to get Sh149.5 million), and Nandi whose 2,215 farmers are set to get Sh82.7 million.

Collectively, four Mt Kenya counties which account for 44 percent of Kenya’s coffee plantations based on Agriculture and Food Authority (AFA)- Kiambu, Nyeri, Embu, and Kirinyaga- accounted for two-thirds of the beneficiaries, getting 51.2 percent (Sh1.5 billion) of the funds.

Details on the disbursements come a month after New KPCU on December 22, 2023, announced the disbursement structure for the Sh4 billion the Cabinet approved in October 2023.

“First disbursement to farmers will be at a rate of Sh40 per kg of cherry at the factory level,” read a letter by New KPCU Managing Director Timothy Mirugi dated December 22.

Mr Mirugi indicated that the second disbursement would be based on an additional Sh40 per kg of cherry under parchment one, an additional Sh20 per kg under parchment two, and an additional Sh10 per kg of cherry under parchment three.

While approving the Sh4 billion for coffee farmers on October 13, 2023, the Cabinet indicated that the aim was to have farmers earn Sh80 for every kilogramme of cherry from the then Sh20/kg as an advance payment.

The Sh4 billion was in addition to the Sh3 billion that had been released earlier.

“The government will also deliberately search for better markets for farmers by inviting world-renowned coffee dealers,” the Cabinet said.

Kenya had 109,400 hectares of land under coffee plantations producing 51,900 tonnes by 2022, based on the latest Economic Survey.

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