DP Kindiki announces waiver of Sh176 million debt owed by Embu Coffee Mills

Deputy President Kithure Kindiki announced that the government will forgive the Sh176 million debt owed by Embu Coffee Mills.

While addressing coffee farmers at a gathering held on Saturday at Kavutiri Primary School in Runyenjes, Embu County, Kindiki revealed that Sh7 billion has been set aside by the government for farmers through the Coffee Cherry Advance Fund.

Additionally, he emphasized the need for tighter oversight of cooperatives to eliminate dishonest managers who misappropriate farmers’ funds.

"We must make sure the governance of cooperatives is streamlined. We must not allow mismanagement of coffee societies. Some managers have taken loans attracting high interest rates yet the government has allocated money under the Coffee Advance Cherry Fund at affordable interest rates," he said.

The Deputy President stated that efforts to reform the coffee industry are being ramped up to boost farmers' earnings, following this year's improved returns.

He assured that the government is dedicated to streamlining the coffee sub-sector to ensure even higher payments for farmers, who have seen the best returns in years.

"We committed to fair compensation for farmers and guaranteed minimum returns. In our manifesto, we pledged to increase the payment to at least Sh100 per kg of cherry. Within just two years in office, we have surpassed that threshold. It’s possible to push payments even beyond the Sh150 that some farmers are receiving now," Kindiki said.

He pointed out that the Coffee Bill 2025 and the Cooperatives Bill 2025, which are set to introduce additional reforms, are in the final stages of preparation.

Kindiki emphasized that the two Bills will further enhance the coffee sub-sector, ensuring farmers earn more.

He also mentioned other reforms, including the issuance of a single license for each player in the value chain, aimed at eliminating the overlap of roles that has long contributed to the exploitation of farmers.

Under the new government policy, individuals can now only obtain a single license for farming, milling, brokerage, or marketing, in line with stricter regulations aimed at improving the sector.

Payment to farmers has also been expedited, with payments now being made within five days of a sale at the Nairobi Coffee Exchange.

Kindiki further pledged to improve the availability and distribution of subsidized fertilizers, ensuring they reach farmers at the right time.