There
seems to be no end to Nyeri coffee farmers feuds as local coffee politics in
the county come to haunt Governor Nderitu Gachagua. Local farmers are pointing
figures at the governor and his allies for being behind the current problems
facing them.
By
late last week, word had it that a major demonstration was being planned to
have coffee farmers and those who depend on the industry for survival to block
roads and avenues leading to Gachagua’s offices and have him explain the true
story of what was happening to the sector that is their lifeline. Claims have
been that coffee said to have been exported is being stored in two go-downs
outside the county after the would-be buyer was not comfortable with the deal.
Investigations
reveal that apart from the mismanagement issues by those entrusted to market
the coffee on behalf of the farmers, middle men famously known as brokers both
at the local and international level have also led to poor sales of the
product.
It
is also widely believed that local politics within the county and among the
political players have also resulted into the big loss currently being
experienced by the farmers.
But
even as Gachagua retreats to the boardroom to find best possible ways of
handling the nonpayment of coffee farmers which is now threatening to get out
of his hand, members of the Nyeri county assembly continue to blame the
devolved government for delaying payment to farmers and accused it of selling
the coffee at a price lower than what it had promised.
What
is now worrying is the fact that despite assurance from Gachagua of instant and
prompt payments, the farmers who have been waiting for the payment of their
produce delivered more than a year ago are yet to be paid. The farmers are now
tired of empty promises.
According
to some of the farmers who have waited for payments for more than six months,
the Nyeri county government promised to pay a minimum of Sh130 per kilogramme
after marketing their produce internationally by bypassing local brokers.
County
assembly majority leader Anthony Kibuu and chairman of the assembly agriculture
committee James Kibira have come out to give ultimatum to the county government
to pay the farmers promptly. They threatened to rally farmers to demand their
dues, which they said was long overdue. “The farmers were promised payment by
end of June. Now we are going into August and still they have not been paid,”
he said.
The
law requires that payment be made to farmers within 14 days after sale,
according to the assembly official. Kibuu said he feared that the money may
have been deposited in an individual’s account and was accruing interest. He
has demanded to be told where the interest, which he said would be in millions,
would be taken. It is said that farmers who defied a proposal by Gachagua to
deliver coffee to Sagana Mills had obtained good prices. Those who played in
the governor’s game plans are now baying for his blood.
Gachagua
is now feeling the heat from farmers and local politicians as well as the
Agriculture ministry officials for failing to honour the pledge he gave to
farmers upon assuming office.
Gachagua’s
initiative to market Nyeri coffee directly to various global market sources
first met resistance from coffee farmers and politicians but farmers were
convinced. Sources now say that Gachagua and his team underestimated the coffee
marketing system hence the failure to pay farmers in time.
When
the governor announced his new marketing plans, one of the dominant coffee
dealers, C Dorman, through its managing director Bridget Carrington wrote a
letter on January 14 this year to clients and friends around the world warning
them of the developments in Nyeri.
According
to well-placed sources, it is estimated coffee worth about Sh2 billion has been
sold, of which farmers have received less than Sh355 million. Recently, Gachagua
told farmers to be patient as they will have to wait for at least a month to
get paid.
Sources
say Gachagua is also feeling the heat from creditors who are demanding more
than Sh850 million they advanced to farmers last year. Reports indicate that
Taifa Sacco Limited advanced more than Sh125 million to coffee farmers in
Nyeri.
According
to Nyeri county assembly majority leader Anthony, the security of the loan was
to be coffee proceeds of the year 2013/2014, which are yet to be fully paid for
by the county government.
Local
leaders are now demanding that Gachagua should not politicise the coffee sector
but should address the farmers’ plight and stop dragging other players into his
muddles.
But
Gachagua in a quick rejoinder and in an attempt to quell the rising dissent
from coffee farmers, vowed not to relent until Nyeri farmers are fully
liberated from the chain of exploitative international buyers.
At
one time, there were claims that Gachagua was fronting a team of investors
including a close family member who have registered a company to deal with
coffee auctions.
Whereas
leaders wanted the governor to allow competition, he is against the move
preferring one entity to control the coffee industry which boasts of over
800,000 farmers but who of late are not making any gains.
To
control the coffee industry, Gachagua is said to have within months in office
set up a taskforce to look into ways to revive the sector whose woes were
blamed on poor prices and middlemen.
The
taskforce was chaired by Wachira Mwago and on it were representatives from
co-operative societies, ministry officials, growers’ regulators among other
stakeholders.
Before
releasing the report, Gachagua is said to have pushed for the recommendation of
having county’s coffee being milled at Sagana Kenya Planters Cooperatives Union
which is owned fully by KCCE thus locking out Central Kenya Coffee Mills Plant
that has invested more than Sh150 million.
It
is said Gachagua and his schemers want to buy KPCU plant in near future at a
throw-away price.
Currently,
industry players say the Sagana plant is being targeted by Gachagua camp due to
a number of reasons. Its capacity of handling seven tonnes of parchment coffee
per hour. It also enjoys four warehouses which can accommodate 200,000 bags for
a period of a year without compromising its quality.
It
has been insured by Co-operatives Insurance Company and has state of art
weighbridge that handles 60 tonnes axle load with well checked ticket
automatically generated machines.
Caught
in the controversy is county executive in charge of agriculture Shadrack Mubea,
a sidekick of Gachagua and the governor’s wife who was instrumental in lobbying
to have him land the slot.
Gachagua
is said to have played a role to have the government proposal to have
centralised coffee milling in the region with farmers openly opposed to it. The
targeted miller has operated for over 10 years.
In
the neighbouring Kiambu county, coffee farmers decry poor prices as leaders
call for state intervention. Coffee factories in Mukurweini sub-county had
borrowed more than Sh62 million, Othaya Sh5million; Mathira more than Sh52
million and Nyeri Central Sh125 million from Taifa Sacco. Coffee millers and
marketers are demanding Sh132 million, under the umbrella body, Commercial
Coffee Millers and Marketing Agents Association which they had advanced as
credit to contracted farmers.
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