The National Coffee Cooperative Union (NCCU) is calling for a one-year extension to June 2026 for implementation of requirement that all coffee sales proceeds be paid directly to farmers’ individual bank accounts.
The union’s chairperson Francis Ngone says this extension will enable coffee cooperatives to complete data clean-up, facilitate opening of bank and cooperative accounts for all farmers, and enhance financial literacy.
The government introduced the Direct Settlement System (DSS) in August 2023 to enhance transparency for payments to coffee farmers.
However, about two years on, a number of farmers especially in rural and marginalized areas, do not yet have bank or SACCO accounts.
Ngone has written a memorandum to Co-operatives, Cabinet Secretary, Wycliffe Oparanya, calling the extension to allow for implementation of the directive requiring direct payments to farmers’ individual bank accounts.
“This extension will enable cooperatives to complete data clean-up, facilitate the opening of bank and SACCO accounts for all farmers, and enhance financial literacy,” said Ngone in a statement.
He is further calling for a safeguard of the DSS platform to ensure it is not politicized by vested interests and parties.
NCCU is also keen on a review of the current levy structure to ensure that it does not erode farmer income and that proceeds are transparently managed to support farmer-facing services.
Currently, coffee brokers, Capital Markets Authority, Nairobi Coffee Exchange and Direct Settlement System are allocated coffee marketing levies.
