Starting July, coffee farmers across Kenya will begin receiving payments through a centralized system managed by Cooperative Bank. The new payment structure is part of sweeping government reforms designed to enhance transparency and eliminate corruption in the coffee sector.
Speaking in Bungoma on Thursday during the launch of a new coffee factory, Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya, said the initiative is a critical step toward safeguarding farmers' earnings and improving service delivery. "Coffee farmers have long been exploited by dishonest individuals within cooperative societies," Oparanya said. "By channeling payments through Co-operative Bank, we aim to close those loopholes and ensure that farmers receive what they truly deserve," he added.
Under the new model, farmers will be paid Sh40 per kilogramme of coffee delivered to their societies.
Of this amount, 80 per cent will go directly to the farmers, while 20 per cent will be retained by the cooperative society for operational expenses or community development projects.
