Kenya’s coffee sector has received KSh1.5 billion from the World Bank, aimed at enhancing the production of specialty coffee.
The funds will be distributed to eight counties (Muranga, Kiambu, Meru, Tharaka Nithi, Machakos, Kirinyaga and Nyeri) that account for close to 70% of the national coffee production. In addition, the money will be issued to cooperatives, which in turn give farmers seeds and subsidized fertilizer to boost productivity.
Additionally, part of the funds from the World Bank will go towards the automation of cooperative processes and modernization of the equipment.
Some components of these funds will be used in marketing. We want to improve the productivity of specialty coffee and link farmers to direct markets in order to eliminate the issue of cartels.
Business Daily quotes Agriculture CS, Peter Munya
Furthermore, the program seeks to eliminate the cartels by sourcing the market for farmers to enable the direct sale of their produce at the best prices, with the long term goal of increasing productivity from the current 40,000 metric tonnes annually to more than 100,000 metric tonnes.
Currently, more than 95% of the country’s coffee is sold to the world market via auction at the Nairobi Coffee Exchange, with only a 12% window for direct sales.
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