Nairobi: Co-operatives and Micro Small and Medium Enterprises (MSMEs) Development Cabinet Secretary (CS), Wycliffe Oparanya, has blamed governance issues within coffee cooperative societies for the decline of coffee production in the country.
According to Kenya News Agency, Kenya was one of the leading global coffee producers in the 90s, with the highest production recorded in 1990 at 130,000 metric tons, but has declined over the years to the current average of 50,000 metric tons, translating into a decline of about 60 percent. CS Oparanya highlighted that weak management systems in coffee co-operatives and mismanagement have been systematic barriers hindering the growth of the coffee sector, thus causing low production volumes over the years.
Speaking in Embu Town while launching Coffee Revitalization Program Steering Committees for Embu, Meru, Tharaka Nithi, and Kirinyaga Counties, CS Oparanya said the government had taken aggressive regulatory and structural reforms under the National Coffee Revival Programme to reverse the trend. He mentioned that through the Co-operatives Bill currently before the National Assembly and the Sacco’s Societies Act Amendment Bill 2008, the government aims at dismantling management issues, eliminating cartels, and tripling production to 150,000 metric tons by 2029.
Oparanya stated that through the Co-operatives Bill, which is at the mediation stage after passing both the National Assembly and the Senate, the government seeks to establish a robust legal framework to institutionalize transparency and financial accountability in the governance of cooperatives. He emphasized the need to reverse the structural collapse caused by governance issues that have affected coffee production.
By implementing this bill, the government aims to shift power back to farmers by breaking the monopoly on leadership that led to farmers losing their earnings to corrupt leaders. Other key provisions of the bill include establishing rigid term limits for directors, strict debt and borrowing thresholds, lowering production costs, and aligning responsibilities between counties and the national government.
CS Oparanya also mentioned that through the Sacco’s Societies Act Amendment Bill 2008, the government plans to modernize the pooling, sharing, and protection of funds across the cooperative movement. This legal framework will allow wealthier Saccos to lend funds to struggling ones to retain the money within the Sacco ecosystem and reduce interest overheads.
Meanwhile, the CS noted that the establishment of Coffee Revitalization Program Steering Committees across all coffee-growing counties will help institutionalize the coffee revival agenda.
