Cartels in coffee sector subdued, DP Gachagua says

 

The government has cornered cartels in the coffee industry and foiled plans to frustrate the ongoing reforms in the agricultural sub-sector.

Deputy President Rigathi Gachagua on Sunday said the government’s decision to pay coffee farmers an advance of Ksh. 4 billion and invite global coffee dealers to directly buy Kenyan coffee, are some of the moves that have thwarted plans of the cartels.

Speaking at the PCEA Mihuti in Mukurweini, Nyeri County, the Deputy President said the reforms in the coffee sub-sector were facing resistance from brokers and middlemen, who have been profiteering more than the farmers.

“They have been buying the produce at a low price, sell at high prices and retain all the profits. We have been asking them to share the profits but are opposed to it. Instead they conspired to boycott Kenyan coffee, creating an artificial crisis in an attempt to coerce the government into abandoning the reforms,” said the Deputy President.

He added that the government was exploring more solutions to problems bedevilling the sector by seeking groundbreaking business deals for the farmers.

At the event, he was accompanied by the host area MP John Kaguchia and other Nyeri leaders including Deputy Governor David Kinaniri and Woman Representative Rahab Mukami.

In his remarks, the Deputy President said the Cabinet Secretary for Cooperatives Simon Chelugui was working on modalities for payment of the Ksh. 4 billion directly to the farmers.

He added that the cartels frustrated implementation of the reforms in 2019 and the previous administration stalled the planned changes.

“This time we are determined. The government has set aside Sh4 billion and there is another Sh2 billion to buy coffee. The Cabinet Secretary for Cooperatives is working on modalities of how the money will reach farmers directly. We thank President William Ruto for his intervention. We had a meeting with American ambassador to Kenya Meg Whitman and she agreed to introduce our coffee to the world’s largest coffee chain Starbucks,” he said.

He continued: “They will be buying our coffee directly. Some of the buyers have been using our coffee to blend their products and increase the quality of coffee produced from other countries. We want to remove the middlemen and brokers from the chain.”

He explained that the government’s fight with brokers and middlemen was about profits. He said the reforms were on course and that the Ruto-administration was determined to restore sanity in the agricultural sector.

The leaders praised the Deputy President over his leadership and determination to revive the agriculture sector.

“You are our leader and as a community we know you have an obligation to unite the mountain people. The work you have been doing with the President is great, we have faith and hope in your leadership and we are praying that you succeed in implementing the manifesto. You are our leader and we trust that you will succeed,” said Kiambaa MP Kawanjiku.

His colleague, Mejjadonk Gathiru asked Kenyans to support the government adding that it had performed for the one year President Ruto and DP Gachagua have been in office.

“This government is the first one to fully implement its manifesto. For instance, rolling out of the Hustler Fund, Universal Health Care and distribution of subsidized fertilizer. The government is also funding coffee farmers through release of Sh4 billion advance payment, streamlining all agriculture subsectors,” said Gathiru.

EALA member Kanini Kega also rallied support for the Kenya Kwanza administration.

“Though I did not elect you, as I was in Azimio, we support you. We resolved to support you and President Ruto. As mountain people, we can’t allow ourselves to be divided. Our leader in the Mountain region is DP Gachagua and we are loyal to him. And we have no choice but to support him,” said Kega.   BY KBC NEWS