Only coffee farmers registered in a cooperative union or affiliated to the New Kenya Planters Cooperative union will benefit from the Ksh 3billion coffee Cherry Advance Revolving Fund.
According to the fund’s regulations published by the National Treasury the amount to be disbursed to individual farmers will be determined by the prices of coffee at the exchange and volume of coffee delivered with farmers getting the loans within 14 days after application.
Last year President Uhuru Kenyatta announced the establishment of the fund to cushion farmers from delayed payments with the Cabinet approving operationalization of the fund in December last year.
In a bid to streamline operations in the coffee sector after the unveiling of the new board to manage the revamped New Kenya Planters Cooperative Union, Treasury has published regulations that will guide the distribution of the fund within a month as directed.
According to the regulations the fund will be controlled by the New-KPCU board and will have its accounts in one local bank with 3 signatories nominated by the board.
For coffee farmers to access the funds, he or she must be a member of a cooperative union or registered member of the new KPCU and have an official relevant government and cooperative documents including registration certificate from affiliated cooperatives among other basic requirements.
The document indicates framers will be given credit advances basing on forty per cent of the prevailing average sales price at the Coffee Exchange, 20 shillings per kg of cherry delivered and forty per-cent of the payment rate to members by a cooperative society for the immediate past crop year, with the board given discretion to change the criteria to be used when advancing loans to farmers.
The coffee loan advances shall be a first charge on the applicant’s sale proceeds for coffee.
The applicant may also repay the coffee advance through alternatives means.
The board will communicate to farmers on the state of their loans application in 14 days after receiving the applications with successful applicants receiving the monies within the same period.