Gachagua admits having lost the fight against coffee cartels

[Kadudu]

• Tweet

He even claims to have rejected a bribe of 7B Ksh from the cartels. He did not even bother to report the case to the police.

"When we appointed Linturi, they tried to bribe him with Sh30 million to fall for their trap but Linturi informed me and the Head of State. They had approached me and had offered Sh7 billion but I refused," Gachagua said. 

Gachagua has ruined the coffee market instead of cleaning it. It is said Kenya coffee is no longer available in the world market due to this man's efforts.

https://www.standardmedia.co.ke/national/article/2001482294/gachagua-weve-been-defeated-by-coffee-cartels-but-we-will-soldier-on

[Githunguri]

Gachagua is PATHETIC.

He cancelled trading licenses for both auction and direct sale.He wanted to be the main broker by issuing trading licenses to his buddies or getting a percentage from the current traders who refused his demands.

When he persisted,The coffee cooperatives across Meru,Kisii,Bungoma and Rift Valley teamed up and refused to sell their coffee.The Kikuyu large scale coffee producers and small scale cooperatives joined them.

This led to alot of noise from Kisii,Kikuyu,Meru,Kalenjin Mps in coffee producing regions because their constituenta were suffering.To make matters worse,coffee being an export earner,Ruto had to accept their demands and tell Gachagua to stop the nonsense.

What even made the matters worse for Gachagua is that the main buyers of kenyan coffee are europeans and americans,Without supply from kenya and attempts by Gachagua to determine who sells them coffee and at what price,they told him to cut the nonsense through their embassies.

At the end of it all,Gachagua is more hated by coffee farmers in Kisii Kalejin bungoma meru kikuyu,What a petty man?The international buyers and diplomatic missions know what type of a person he is.Very petty.enemies everywhere.

You can imagine coffee farmers survive on loans,when you start playing games with their business,they wouldnt want anything to do with you.

[KenyanPlato]

Gachagua nii kirimu (a fool). He has been assigned a fools errand..there is no coffee that needs protection. The market I'd working and he should spend his time looking for place to the settle the landless kikuyus..open another district like nyandarua and send kikuyu plotelarit there ..ruto is a joker to jave selected this moron as his dp

[Githunguri]

 Wa iria told him to find ways to return the 80000+ acres owned by kakuzi and delmonte back to Kikuyu,Instead of  that the guy is engaging in petty fights,unctrollable vengeance while the wife was accused of grabbing delmonte land.

Gachagua,mefhu,kawanjiku,kagombe,Wamaua..these are the people leading  Kikuyus.What a sad state of affairs.the worst.I dont think even luos or kalenjins elect such calibre.

[hk]

They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture. 

[Higgins the genius]

They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture. 

What is the Solution to this coffee issue? Uprooting?

[machoman]

Just the other day he was spitting fire. What happened? Ama we just fill in the dots.

[hk]

They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture. 

What is the Solution to this coffee issue? Uprooting?

The solution was to deregulate and fully liberalize to get clear price discovery and market transparency. Turning Nairobi coffee exchange into a regional coffee commodity exchange drawing international buyers should have been the priority. The future of coffee farming in kenya is in small estate selling specialty coffee, cooperatives society will collapse.

[gout]

Govt interventions are bound to bring market distortions.

It is a lie to say that the world does not need Kenyan coffee - this is a lie by a few individuals/corporates who have control of the European and US market. Just because they have misgivings with Gachagua they are ready to burn the value chain but am sure given the money in it some fellows will crack it. I have been involved in sending samples to Dubai, and China, and the reports on Kenyan coffees is incomparable to Uganda, Tanzania, and even Ethiopia.

Coop bank has invested in coffee farmers for decades and is the banker of farmers saccos and farmers cooperatives.

They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture. 

[hk]

Govt interventions are bound to bring market distortions.

It is a lie to say that the world does not need Kenyan coffee - this is a lie by a few individuals/corporates who have control of the European and US market. Just because they have misgivings with Gachagua they are ready to burn the value chain but am sure given the money in it some fellows will crack it. I have been involved in sending samples to Dubai, and China, and the reports on Kenyan coffees is incomparable to Uganda, Tanzania, and even Ethiopia.

Coop bank has invested in coffee farmers for decades and is the banker of farmers saccos and farmers cooperatives.

They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture. 

Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua? Coffee buyers can easily replace Kenyan coffee  with south american, rwanda or ethiopian coffee. The biggest global coffee buyers of kenyan coffee are Nestle, starbucks ,Tchibo and luis drefus. Starbucks is the biggest coffee chain in china and dubai, if starbucks were to procure coffee elsewhere it'd definitively lower the coffee prices, this is what has happened.
I have been exporting our coffee(direct sales) for more than 10yrs, this year we'll have to sue or export it to uganda or rwanda then re-export if the proposed rules are implemented.
Cooperative bank has been running stabex funds for decades but DSS will be in forex and hold kenya's coffee earnings including estates. Among big banks cooperative has the lowest forex deposits, this is meant to shore things up.
David ndii wrote a paper more than 25yrs ago on coffee, they should have read it https://www.theelephant.info/op-eds/2019/05/21/memo-to-political-busybodies-there-is-no-value-addition-in-processing-coffee-it-is-a-cockroach-idea/

[gout]

This is exactly cartelish blackmail. Why not sell through licensed marketers? Why incite the global buyers not to deal with KPCU. Even Moses who was gaga about 'value addition' climbed down and it is all about market access.

So Ibero would rather do a Chepkube and take coffee from Kenya to Uganda? Soon the market will speak and bring in more players.

The wailing marketers have corrupted and captured the farmers' cooperative  and do not want any fresh players.

Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?

[hk]

This is exactly cartelish blackmail. Why not sell through licensed marketers? Why incite the global buyers not to deal with KPCU. Even Moses who was gaga about 'value addition' climbed down and it is all about market access.

So Ibero would rather do a Chepkube and take coffee from Kenya to Uganda? Soon the market will speak and bring in more players.

The wailing marketers have corrupted and captured the farmers' cooperative  and do not want any fresh players.

Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?

Renew their license and they'll sell to whomever they want to. Government can register as many brokers, millers and marketers as they want(fully liberalization). In a free market the new entrants can earn their business but forcing existing players to shutdown for new entrants to scoop up buyers is counter to market regulations. If cooperatives are corrupted why not scrap the coffee act that forces farmers to sell to cooperatives? The future of coffee in kenya is in small estate( 2acres and above  and aggregators (similar to early milk collection companies). If kenya coffee is so valuable why are global buyers incited not buy from kpcu? One would think they'd be scrabbling to buy kenya coffee from whomever is selling it.
BTW cooperatives have their broker and marketing firm, why not sell through them? The coffee market just needs more transparency, coffee brokers just like investment banks buy coffee in the market to resell, its one of the reason why price changes from price declared at CME and at export declaration in Mombasa. This should be handled by markets regulation authority.

[gout]

This sounds criminal. Holding onto farmers coffee produce for blackmail.

This is exactly cartelish blackmail. Why not sell through licensed marketers? Why incite the global buyers not to deal with KPCU. Even Moses who was gaga about 'value addition' climbed down and it is all about market access.

So Ibero would rather do a Chepkube and take coffee from Kenya to Uganda? Soon the market will speak and bring in more players.

The wailing marketers have corrupted and captured the farmers' cooperative  and do not want any fresh players.

Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?

Renew their license and they'll sell to whomever they want to. Government can register as many brokers, millers and marketers as they want(fully liberalization). In a free market the new entrants can earn their business but forcing existing players to shutdown for new entrants to scoop up buyers is counter to market regulations. If cooperatives are corrupted why not scrap the coffee act that forces farmers to sell to cooperatives? The future of coffee in kenya is in small estate( 2acres and above  and aggregators (similar to early milk collection companies). If kenya coffee is so valuable why are global buyers incited not buy from kpcu? One would think they'd be scrabbling to buy kenya coffee from whomever is selling it.
BTW cooperatives have their broker and marketing firm, why not sell through them? The coffee market just needs more transparency, coffee brokers just like investment banks buy coffee in the market to resell, its one of the reason why price changes from price declared at CME and at export declaration in Mombasa. This should be handled by markets regulation authority.

[gout]

Very good news as the painful reforms starts paying off.

The criminal gang has cracked. Government interventions need to be made personal. Biggy G future is tied to this.

This is the way to go after dynasty enablers- NIS, DCI, KRA and then courts or let the markets play out. It does not have to be outright extra judicial.


https://www.standardmedia.co.ke/central/article/2001484151/private-coffee-millers-troop-back-to-nairobi-auction

700 tonnes is substantial for one small roaster.

It is a breakthrough today as we signed a deal with The Java Coffee Company in Rotselaar, Belgium, to source coffee directly from our smallholder farmer, with a focus on women.

It is a monumental outcome of our coffee reforms, with our farmers  guaranteed  better… pic.twitter.com/cZyzbY9E1X

— Rigathi Gachagua (@rigathi) October 26, 2023

Any dollar inflow is such a relief.

[hk]

What reforms? The cartels licenses trading licenses were renewed without cancellation of milling and marketing licenses. The major brokerage companies still dominates the auction the likes of ibeiro and dormans. More importantly the price of coffee hasn't improved its still at around $4, the only saving grace is depreciation of Ksh. Just like tea farmers bonuses were higher due to ksh. depreciation.
As for java coffee company that company has been buying kenya coffee for more than 10yrs, its strictly a pr stunt. Which cooperative societies was Gachagua representing that signed direct coffee sale? Next we're going to be told that starbucks is buying kenya coffee and all along starbucks has been second biggest buyer after nestle.

[Kadudu]

Gachagua is a big joke. How many thousands of such coffee roosters are there all over in Europe and in the US?

It is a breakthrough today as we signed a deal with The Java Coffee Company in Rotselaar, Belgium, to source coffee directly from our smallholder farmer, with a focus on women.

It is a monumental outcome of our coffee reforms, with our farmers  guaranteed  better… pic.twitter.com/cZyzbY9E1X

— Rigathi Gachagua (@rigathi) October 26, 2023

[KenyanPlato]

Gachagua is w villager trying to deal with world trade issues

[gout]

The coffee farmers are peasantry villagers offering the best quality of coffee globally which large scale farmers with their best crop husbandry can't.

Gachagua is w villager trying to deal with world trade issues

[gout]

This is transparency- Gachagua already explains that New KPCC is what will be working with the roasters. More transparency as he will explain to farmers how the 700 tonnes were sourced. 

The signing is just ceremonial just like presentation of dummy cheques.

Seems likes of Ibero and Dormans won't be going to Uganda after all.

What reforms? The cartels licenses trading licenses were renewed without cancellation of milling and marketing licenses. The major brokerage companies still dominates the auction the likes of ibeiro and dormans. More importantly the price of coffee hasn't improved its still at around $4, the only saving grace is depreciation of Ksh. Just like tea farmers bonuses were higher due to ksh. depreciation.
As for java coffee company that company has been buying kenya coffee for more than 10yrs, its strictly a pr stunt. Which cooperative societies was Gachagua representing that signed direct coffee sale? Next we're going to be told that starbucks is buying kenya coffee and all along starbucks has been second biggest buyer after nestle.

[hk]

This is transparency- Gachagua already explains that New KPCC is what will be working with the roasters. More transparency as he will explain to farmers how the 700 tonnes were sourced. 

The signing is just ceremonial just like presentation of dummy cheques.

Seems likes of Ibero and Dormans won't be going to Uganda after all.

What reforms? The cartels licenses trading licenses were renewed without cancellation of milling and marketing licenses. The major brokerage companies still dominates the auction the likes of ibeiro and dormans. More importantly the price of coffee hasn't improved its still at around $4, the only saving grace is depreciation of Ksh. Just like tea farmers bonuses were higher due to ksh. depreciation.
As for java coffee company that company has been buying kenya coffee for more than 10yrs, its strictly a pr stunt. Which cooperative societies was Gachagua representing that signed direct coffee sale? Next we're going to be told that starbucks is buying kenya coffee and all along starbucks has been second biggest buyer after nestle.

So in a nutshell cooperative societies will be forced to sell their coffee via KPCC . Basically the reforms being touted are meant to regulate the industry and undo the 90s liberalization.
Gachagua brother tried forcing cooperative societies to sell via kpcu, cooperative socieites sued and were allowed to sell via other marketers.
The 700 ton order is a letter of intent at best, meaning certain stipulations have to be meant, mainly quality and cupping notes, this  iswhat will determine the price and where coffee will be sourced. The marketer handling this if its kpcu gets 2% fee or basically we're only changing private marketer for govt broker.
Ibero and dormans have operations in uganda and besides government renewed their licenses so they dont have to move their operations.