2 billion debt write-off for coffee farmers

[RVtitem]

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www.capitalfm.co.ke/business/2016/11/uhuru-announces-sh2bn-coffee-debts-written-off/

[Kadudu]

Hard working people indeed. How many times have these debts been written off?

[hk]

This are debts that KPCU  and owed cooperatives society, it has zero effect on the local farmer. The industry is already starting to consolidate among small farmers who have atleast 5acres. The only solution to coffee sector is complete liberalization by repealing the coffee act. Uhuru should head to mwea to sea how liberalization has worked beautifully in that region and now the area economy is booming.

[Georgesoros]

Appearing to do something to help while doing nothing. Kirinyagans will benefit from better roads than this crap.

[RVtitem]

This are debts that KPCU  and owed cooperatives society, it has zero effect on the local farmer. The industry is already starting to consolidate among small farmers who have atleast 5acres. The only solution to coffee sector is complete liberalization by repealing the coffee act. Uhuru should head to mwea to sea how liberalization has worked beautifully in that region and now the area economy is booming.

Who used this monies? Is it used entirely by KPCU administration or it is farmers who get loaned?

[Empedocles]

Hard working people indeed. How many times have these debts been written off?

Elections next year.

Same thing happened in December 2011, when Uhuru was finance minister.

So who'll shoulder the write-off of these debts?

Taxpayers, from all over the country.

[Gumzo]

This are debts that KPCU  and owed cooperatives society, it has zero effect on the local farmer. The industry is already starting to consolidate among small farmers who have atleast 5acres. The only solution to coffee sector is complete liberalization by repealing the coffee act. Uhuru should head to mwea to sea how liberalization has worked beautifully in that region and now the area economy is booming.

This is not within our control, coffee is the most unfairly traded commodity in the world and it has been controlled
by cartels since the days of Ottoman turks.

In the implicit history of coffee in Ottoman society one comes across evidence of every single point of conflict which that society incorporated: those in power versus their opposition, city versus countryside, mysticism versus orthodoxy, and more, Because so much of that history went unrecorded and transpired far from view, we can see only the results of events and not the details of their causes.

There are international cartels working closely with the local cartels which GOK dare not touch because of the power they have
Thousands of farmers at the mercy of coffee cartels .
 

[Kim Jong-Un's Pajama Pants]

Saw the story from another angle http://www.nation.co.ke/news/Uhuru-Kenyatta-writes-off-Sh2bn-coffee-debts/1056-3469140-hkrrknz/index.html.

Martha Karua is now fully de-fanged.  Singing songs of praise to the muthamaki.  2022 might be the year of mama, at least in Centro.  You know women also deserve a shot.  Ama?

[Empedocles]

Saw the story from another angle http://www.nation.co.ke/news/Uhuru-Kenyatta-writes-off-Sh2bn-coffee-debts/1056-3469140-hkrrknz/index.html.

Martha Karua is now fully de-fanged.  Singing songs of praise to the muthamaki.  2022 might be the year of mama, at least in Centro.  You know women also deserve a shot.  Ama?

Karua, like Ruto, ain't pedigree.

[hk]

This are debts that KPCU  and owed cooperatives society, it has zero effect on the local farmer. The industry is already starting to consolidate among small farmers who have atleast 5acres. The only solution to coffee sector is complete liberalization by repealing the coffee act. Uhuru should head to mwea to sea how liberalization has worked beautifully in that region and now the area economy is booming.

Who used this monies? Is it used entirely by KPCU administration or it is farmers who get loaned?

The collateral for the loans was coffee which KPCU deducted . I think it was year 1999 when some cooperative societies were not paid or paid ksh.5 per kg of coffee to pay for the loan. The following year the industry was semi liberalized and private companies were issued licenses to mill and market coffee e.g thika coffee mills. Then at the same time the coffee societies started disintegrating to smaller societies and the new societies had no loan obligation. The loans were taken out to pay farmers presale of coffee and immediately deducted after coffee was sold so farmers have already paid here is example of the loans https://www.co-opbank.co.ke/agri-cooperatives/stabex-fund . The management of societies and KPCU is to blame for those loans.
Some farmers were so mad after nonpayment and little payment that they uprooted their coffee, actually that the genesis of the diversified farming in most of central with macadamia,dairy,horticulture, poultry and pig farming taking place 

[RV Pundit]

Seem like an expensive annual ritual. Time to bury kpcu. We cannot afford to be giving coffee 2b every year.

[hk]

Seem like an expensive annual ritual. Time to bury kpcu. We cannot afford to be giving coffee 2b every year.

I agree. Also the likes of cooperative banks that loan cooperatives societies money need to be left  to their own tools to recover debt. Part of that 2b most likely will end up in cooperative bank. Muriuki Md of coop bank is one of the powerful cartels who are against full liberalization of the sector.

[Omollo]

The last time I raised this matter (http://nipate.com/viewtopic.php?f=2&t=50660&start=15 ) I weas villified by some here.

I repeat the issue is Farmer Indebtedness regardless of the crop. So why is there no comprehensive plan to address it accross the board. Yes Sugarcane farmers do get some form of relief though markedly different from the largesse lavished on Kikuyu farmers. However this should be stratified and administered in a non discriminatory way.

I can foresee the EU or Brazil taking Kenya to WTO for illegal subsidies. May be somebody should do this to stop what Pundit rightly (this time) calls the "annual ritual" of paying off ethnic Kikuyu loans using Tax payers funds.

[hk]

Whether uhuru rights off the coffee debt or not farmers earnings wont change by even a cent. This is one of those populist things uhuru does that have little effect on the underlying problem. Small scale farmers i.e farmers with less than 5 acres are being crushed by mismanagement of coffee societies. The problem with coffee is cooperative societies and marketing agents.

[Omollo]

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[Kim Jong-Un's Pajama Pants]

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That is very admirable propaganda, within the parameters of Kenyan politics.  If CORD keeps it on a loop, they have coast secured.