Timothy Mirugi - Coffee Financing

1. Sustainable Development and Economic Growth
In The African Coffee Subsector
Coffee Financing

2. New Kenya Planters’ Co-operative Union (New KPCU) is an established
State Corporation under the State Department of Co-operatives in the
Ministry of Agriculture, Livestock, Fisheries and Co-operatives.
ABOUT US
Our Vision Our Mission
To be a farmer centred organization
providing affordable milling,
warehousing, marketing services and
the administration of sustainable Cherry
Advance Fund and the Coffee Farm
Inputs Subsidy programme
To support coffee growers, achieve their
full potential, improve their livelihood by
providing incentives while restoring
confidence in the Coffee value chain

3. Since establishment we have provided milling and
marketing services to both;
Coffee Farmers Categories
Estate farmers
Small holder farmers in
cooperative societies

4. Farmer incomes assist in financing major household
expenses having a direct and indirect impact to poverty
eradication
Coffee Financing
Health care Education Household Utilities

5. Challenges faced by farmers
Coffee Financing
High Cost of farm inputs
High interest rates from loan institutions
High labour costs esp. during harvesting
Low Prices for dried berries due to harvesting
delays

6. Challenges Causing Low Productivity
Coffee Financing
•Low Production
•High processing costs
•International price fluctuations

7. Transparency in our
services has resulted in
healthy market
competition, increased
coffee prices and farmer
earnings from an average
of Ksh35/kg to Ksh 80.00
per kg of cherry .
Coffee Financing
Average earnings of farmers
Year
2018/2019
Year
2020/2021
80
60
40
20
0
Kshs
Per
KG Kshs 35
Kshs 80

8. The introduction of the
Kshs. 3 Billion cherry fund
has improved liquidity to
farmers enabling them to
access basic commodities
such as farm inputs as
they wait for coffee sales
Coffee Cherry Advance Revolving Fund

9. Coffee Cherry Advance Revolving Fund Disbursement
We advance Co-operative
society members at;
We advance Estate
farmers at;
Kshs 20
Per kilo of cherry
delivered
40%
Of the prevailing average
sales price at the coffee
exchange

10. 1. Charges a 3% Administrative fee with no
interest.
2. Quick disbursement.
3. Advance is reducing farm gate sales to brokers.
4. Amount is recoverable after coffee sale.
Benefits

11. 1. Low Production and poor quality coffee.
2. Undertaking by marketers.
3. Operational costs of societies.
4. Low uptake of the advance due to farmer loan
burdens
5. Governance issues within co-operatives.
Coffee Cherry Advance Revolving Fund
Challenges

12. The Ministry of Agriculture initiated reforms in
the coffee sub-sector geared towards increasing
the overall coffee production in the country
through the provision of quality and affordable
farm inputs.

13. Coffee Farm Inputs Subsidy Programme
Amount Payable
for inputs by
farmers
40%
60%
Subsidy
Amount

14. Coffee Farm Inputs Subsidy Programme
58,921
Farmers who have
been registered to
date
80,087
Farmers who have
received subsidized
Inputs

15. • New Kenya Planters Cooperative
Union PLC
• Headquarters: Wakulima House,
Haile Selassie Avenue
• P.O Box 59638 – 00200, Nairobi
• Tel: 020 200 1401
• Email: info@newkpcultd.co.ke
• Website:
www.newkpcultd.co.ke

16. THANK YOU