Farmers borrow Sh300m from coffee fund in 2 months

Published 2023년 3월 13일

Tridge summary

In the past two months, Kenyan coffee farmers have significantly tapped into the Coffee Cherry Advance Revolving Fund, receiving Sh300 million in low-cost loans, marking one of the highest absorption rates since the fund's inception three years ago. This uptake exceeds the Sh200 million absorbed in the 2020/2021 financial year and more than half of the Sh400 million disbursed in the first half of 2022. The increased demand is largely due to improved public awareness and the relaxation of access criteria, allowing non-KPCU cooperative members to access these funds for the first time. Initially designed to provide small-scale growers with immediate financial support at a 3% interest rate to improve coffee quality and output, the fund is repaid from the sales proceeds of the farmers' produce.

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Original content

Farmers have received Sh300 million worth of low-cost loans from the revolving coffee cherry fund in the last two months, marking one of the highest absorption rates since the kitty was started three years ago. Co-operatives Cabinet Secretary Simon Chelugui said the increase in uptake is attributed to more public awareness of the funds and the easing of stringent requirements that had previously barred farmers from accessing the Sh2 billion kitty. The Sh300 million taken in January and February is more than the Sh200 million that was absorbed by farmers in the financial year 2020/2021. Read: Coffee industry renews push for minimum returns fund It marks an increase in the rate of borrowings from the kitty which had disbursed Sh400 million in the six months ended December 2022. Mr Chelugui said they have put modalities in place with the cooperatives that are not members of the New Kenya Planters Cooperative Union (KPCU) to access the loan funds for their members, helping to push up ...

Source: Businessdailyafrica