The Government of Kenya and Korean investor Cha Bo Yong have unveiled a KSh85 million coffee factory in Baringo. Cha Bo Yong contributed KSh70 million, and the county government of Baringo contributed KSh15 million.
The commissioned mill, Cha Coffee Factory, was licensed on a 2.5-acre farm in Tugen hills near Katimok forest in Ossen-Kabartonjo ward, Baringo North sub-county.
The new factory comes as a reprieve to farmers stifled by middlemen purchasing their coffee at cutthroat prices.
Currently, coffee farmers in Baringo County produce an average of 100 tons of coffee beans annually. The new coffee factory, which has a milling capacity of 1.2 tons of cherries per hour, will be able to grind the farmer’s coffee in less than two weeks once it is finished.
The Korean investor further pledged to purchase 100 pulping machines, a bulk of which will go to the 26 cooperative societies within Baringo and the rest to individual farmers.
Meanwhile, the Capital Markets Authority (CMA) has set 1st July 2021 as the deadline for coffee brokers to get new licences under rules introduced in 2020 to get rid of cartels.
After the deadline, Only licensed coffee brokers will be allowed to carry the role of coffee brokerage services. All marketing participants seeking to be licensed to operate as coffee brokers should thus submit complete applications to CMA as soon as possible to facilitate review and subsequent licensing.
The rules seek to guarantee speedy and transparent payment of proceeds to farmers through a direct settlement system that a licensed commercial bank will establish. This will go a long way in limiting the diversion of sales proceeds.
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