A coffee factory in Nyeri has set up its own Savings and Credit Cooperative Organisation (Sacco) to encourage farmers to save their earnings after receiving payment for their produce.
The Ndaroini Coffee Growers PLC Sacco in Mathira also aims to offer farmers cheaper loans than those they get from other lending institutions.
This will enable them to save and borrow money to improve their lives and farming practices.
Mr Joseph Mukuha, the chairman of the factory, said that for years, farmers had been getting money from credit institutions that charged exorbitant interest rates and farmers continued to receive substandard services.
At other times, due to declining coffee production and poor prices, farmers are unable to meet the threshold to receive loans.
“The aim of the Sacco is to ensure that farmers learn how to save by contributing a certain amount with the aim of investing in assets that will help them economically,” he said.
With 2,000 members, Mr Mukuha said their starting capital for farmers starts at Sh10 million with the minimum contribution per farmer being Sh5,000 at the end of three years.
“We are determined to develop our area and improve the livelihoods of our farmers…the facility will be offered to farmers depending on their production,” Mr Mukuha offered, adding that the interest rate on the loans will be much lower at less than 10 per cent.
He went on to say that the surplus of the money from the sacco, which will be wholly owned by the farmers, will go to the members affiliated to the factory.
In order to maximise its income, the factory has also started a value-added venture, processing its premium grades of parchment into ground coffee.
The management of the factory said that the consumption of coffee in the local market has remained negligible and it was time to tap into this opportunity.
“We are starting by encouraging farmers to consume what they produce, and we are also working towards gradually converting tea drinkers to coffee drinkers,” Mr Mukuha added, noting that they intend to aggressively market the produce to achieve their goal.
The Mt Kenya Ndaroini AA brand, he said, will be competing with other established brands in the market by the end of this month.
It will be packaged in 20-gram, 50-gram, 100 gram and 250-gram packs and retailed at Sh1 per gram. BY DAILY NATION