Ruto: Cabinet has approved Ksh6.6B debt waiver for coffee cooperative societies
By Nancy Marende, July 12, 2025President William Ruto has announced that the cabinet approved a Ksh6.6 billion debt waiver to coffee cooperative societies in the coffee-growing counties.
In his speech read by Prime Cabinet Secretary Musalia Mudavadi during the 103rd Ushirika Day Celebrations at the Kenyatta International Convention and Conference Centre (KICC) on Saturday, July 12, 2025, Ruto stated that the government has allocated Ksh2 billion for the waivers in the 2025/25 financial year.
“The cabinet has approved a Ksh6.8 billion debt waiver for coffee cooperative societies, with Ksh2 billion allocated in the current financial year,” he said.
According to the head of state, more than 580,000 farmers have benefited with Ksh8.9 billion from the advanced Cherry Revolving Fund kitty.
“We have also advanced the coffee cherry revolving fund, increasing its capitalisation from Ksh3 billion to Ksh4.75 billion. So far, over 580,000 farmers have benefited from advances totalling Ksh8.9 billion across coffee-growing counties,” he said.
Additionally, he stated that these reforms have increased the price of coffee by Ksh100 from Ksh50 per kilo.
“This measure is bearing fruit in some regions, with an increase in farm gate coffee prices from Ksh50 per kilogram to as high as Ksh150 per kilogram.”
Reforms
This is among the five key reforms in the coffee sector highlighted by the president aimed at improving transparency, accountability, and efficiency.
“The licensing framework has been restructured to assign clear and distinct mandates; county governments now license millers, the Capital Markets Authority (CMA) licenses broking firms, and the Agriculture and Food Authority licenses buyers,” he said.
This structure, he said, eliminates duplication, reduces conflicts of interest, and curbs opportunities for pollution.
Additionally, he stated that coffee farmers through cooperative-owned broking firms have gained direct access to the Nairobi Coffee Exchange, eliminating exploitative middlemen.
“We have also introduced the direct settlement system (DSS) to ensure timely and transparent distribution of proceeds to farmers and to guard against diversion of payments,” he stated.
While acknowledging some concerns have been raised regarding the implementation of the DSS, Ruto said he remains confident that ongoing consultations will address any outstanding issues and ensure a smooth rollout.