By James Wainaina

Representatives of Coffee Societies drawn Central Province have hailed the government for offsetting a Sh 5.8 billion debt owed to farmers by Cooperative Bank of Kenya.

Speaking in a Thika Hotel, the representatives drawn form Murang’a, Maragwa, Kiambu, Thika, Kirinyaga and Nyeri said the waiver will go a long way in boosting the industry as co-operative societies were crippled by hefty debts.

Led by Joseph Ndirangu, the societies’ leaders expressed optimism that the government will pay the Cooperative Bank as minister Njeru Ndwiga promised, noting the Bank was willing to plough back the money to coffee farmers in terms of loans which will attract reasonable interest in a bid to revitalise the ailing sector.

The farmers said following the government undertaking to offset the hefty loan, the farmers will now embark on serious farming.

They said that formerly they were discouraged by the immediate regime that milked the stake holders by introducing a chain of middlemen and exploitative market.

Following the government support, the farmers are optimistic that the wrangles killing societies across the country would be solved to enhance quality, quantity of the crop that would fetch better in the world market and subsequently improve the dilapidated Kenyan economy whose backbone is agriculture.

“With a joint effort with the Ministry of Co-operatives and Marketing and, the Co-operative Bank we will be on our feet once again” a farmers said.

The Sh5.8 billion was realised when the European Union channelled a rotational loan dubbed Stabilisation of Export Funds (STABEX) through the Co-operative Bank but farmers were unable to pay back following a decline in yields.

The farmers will however have to grapple with reduced yield owing to a debilitating drought that hit the country last year.

There are fears that the countrywide drought will slow down economic growth, now projected a 5.5 per cent.

By James Wainaina

Representatives of Coffee Societies drawn Central Province have hailed the government for offsetting a Sh 5.8 billion debt owed to farmers by Cooperative Bank of Kenya.

Speaking in a Thika Hotel, the representatives drawn form Murang’a, Maragwa, Kiambu, Thika, Kirinyaga and Nyeri said the waiver will go a long way in boosting the industry as co-operative societies were crippled by hefty debts.

Led by Joseph Ndirangu, the societies’ leaders expressed optimism that the government will pay the Cooperative Bank as minister Njeru Ndwiga promised, noting the Bank was willing to plough back the money to coffee farmers in terms of loans which will attract reasonable interest in a bid to revitalise the ailing sector.

The farmers said following the government undertaking to offset the hefty loan, the farmers will now embark on serious farming.

They said that formerly they were discouraged by the immediate regime that milked the stake holders by introducing a chain of middlemen and exploitative market.

Following the government support, the farmers are optimistic that the wrangles killing societies across the country would be solved to enhance quality, quantity of the crop that would fetch better in the world market and subsequently improve the dilapidated Kenyan economy whose backbone is agriculture.

“With a joint effort with the Ministry of Co-operatives and Marketing and, the Co-operative Bank we will be on our feet once again” a farmers said.

The Sh5.8 billion was realised when the European Union channelled a rotational loan dubbed Stabilisation of Export Funds (STABEX) through the Co-operative Bank but farmers were unable to pay back following a decline in yields.

The farmers will however have to grapple with reduced yield owing to a debilitating drought that hit the country last year.

There are fears that the countrywide drought will slow down economic growth, now projected a 5.5 per cent.