The government has assured farmers across all 37 coffee-producing counties that it is purchasing a kilo of coffee cherry at a guaranteed price of Sh80 per kilo up from the previous Sh60.
In a statement yesterday, Government Spokesman Isaac Mwaura said Sh6 billion has been put into the Coffee Cherry Advance Revolving Fund for the purchase which started on Tuesday in Makueni County.
“This will ensure a Guaranteed Minimum Return (GMR) of Sh80 per kilo of coffee cherry, up from the previous non-guaranteed price of Sh60. Any surplus revenue generated beyond this guaranteed minimum price will be distributed to the farmers as a coffee cash bonus,” he said.
Guaranteed Minimum Return is a price paid by the government to a farmer for an agricultural product irrespective of market conditions.
The aim is to boost farm production and incomes, remove farm commodity surplus and shore up exports.
Mwaura said the government has taken the approach to address the decline in coffee production caused by price volatility and high production costs as it seeks to boost coffee production in the country from the current 51,000 metric tonnes to over 100,000 metric tonnes by 2025.
As part of its commitment to revitalize the agriculture sector, Mwaura said the government has also increased the allocation to the Agricultural Financing Corporation (KFC) from Sh2 billion to Sh10 billion.
The amount is part of the Sh267.7 billion investment the government has allocated for use in nine key coffee value chains in the 2023/24 financial year. Mwaura said the Sh10 billion will provide farmers with access to credit at single-digit interest rates
