The government will pay only audited and verified debts owed to coffee cooperative societies, Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya has announced, as part of ongoing efforts to reform the coffee sector.
Speaking at Karuri Grounds during a meeting with coffee farmers on Wednesday, CS Oparanya revealed that a thorough review of the sector found that only Sh6.2 billion of the claimed debts is legitimate and qualifies for payment.
“Any cooperative society whose debt is not reflected in the audited report will have to resolve those obligations internally, through their management committees and farmers,” he said, warning that debts outside the verified audit will not be honoured by the government.
The CS said the government has already started settling the verified debts, with Sh2 billion allocated for the initial phase of payments. He noted that the broader sector reforms are aimed at improving efficiency, boosting quality, and ensuring farmers receive timely payments.
A major policy change introduced under the reforms is the centralisation of milling services. Cooperative societies will no longer be allowed to purchase their own milling machines.
Instead, milling will be managed centrally by the Kenya Planters Cooperative Union (KPCU), which will offer the service at more affordable rates.
CS Oparanya also highlighted the government-backed cherry fund, which is helping farmers receive payments within five days of delivering their produce. The fund is expected to provide low-interest credit to farmers, reducing their dependence on commercial bank loans that are often costly.
The reforms form part of a wider strategy to streamline coffee operations, increase earnings for farmers, and restore productivity across the sector. By focusing on verified debts and centralised services, the government hopes to eliminate inefficiencies and ensure a more sustainable future for Kenya’s coffee industry.
