Friday 23 February 2024

Kenya receives $14m from World Bank to boost specialty coffee, improve marketing

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MILAN – Kenya ’s coffee sector has received close to $14 million from World Bank, aimed at enhancing the production of specialty coffee and linking farmers to direct markets in order to eliminate the issue of cartels. Moreover, the Capital Markets Authority announced that it would allow listed companies on the Nairobi Securities Exchange to pay dividends without holding annual general meetings.

The announcement comes just days after President Uhuru Kenyatta extended the term of a team appointed three years ago to reform the sector.

Cabinet Secretary for Agriculture, Livestock, Fisheries and Cooperatives Peter Munya said the coffee revitalization program will improve the efficiency of farmer cooperative societies and support the development of alternative coffee markets.

“The program will contribute and synergize with other interventions that the government is undertaking to revitalize the coffee industry such as review of legislation and establishment of the coffee cherry advance revolving fund,” Munya said.

“Some component of these funds will be used in marketing. We want to improve the productivity of specialty coffee and link farmers to direct markets in order to eliminate the issue of cartels,” he added.

The long term goal is to increase productivity from the current 40,000 metric tonnes annually to more than 100,000 metric tonnes.

Currently, more than 95% of the Kenya ’s coffee is sold to the world market via auction at the Nairobi Coffee Exchange, with only a 12% window for direct sales.

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