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COFFEE DEVELOPMENT FUND - WHERE WE ARE NOW

Coffee Development Fund was established under the Coffee Act No. 9 of 2001 for the purpose of providing sustainable and affordable credit and advances to coffee farmers.

As the Fund builds its financial capacities, it has opted to use a phased approach in the disbursement of credit, starting with short term loans or advances. Since its inception up to 30 th November 2007, the Fund has disbursed Ksh.217.5M to eighteen intermediaries who have in turn lent Ksh.162.33M to 22,889 farmers.

There has been a great and over-whelming demand for the advances credit package, which targets coffee trees that produce at least two kilogrammes of cherry per annum. This demand is an indication that a substantial amount of financial resources is required to raise production. The advances product covers one crop cycle. Following the introduction of the advances package, Coffee Development Fund rolled out a second product called the Coffee Rehabilitation Loan. This is a medium term credit facility provided to coffee growers through intermediaries or directly for the purpose of rehabilitating coffee trees.

The loan is aimed at the trees with productivity of at least 1.0 kilogramme of cherry in a year and where improved production requires relatively more effort in terms of crop husbandry. It will be available over a period of 3 crop cycles or approximately 36 months with 12 months grace period before commencement of repayment. Currently, the loan is targeted at small holder coffee farmers with a minimum of one hundred coffee bushes and small to medium coffee estate growers.

The loans are disbursed through appointed intermediaries and in exceptional cases; the Fund may opt to disburse directly to the beneficiary. The following is the current list of Coffee Development Fund intermediaries:-

1. Agricultural Finance Corporation
2. Baringo Teachers SACCO Ltd.
3. Egerton University SACCO Ltd.
4. Embu Farmers SACCO Ltd.
5. Gusii Rural Farmers SACCO Ltd.
6. Kapenguria Teachers SACCO Ltd.
7. Kiambu Tea Growers SACCO Ltd.
8. Kipsigis Teachers SACCO Ltd.
9. Kirinyaga District Farmers SACCO Ltd.
10. Mathira Farmers SACCO Ltd.
11. Meru Central Farmers SACCO Ltd.
12. Meru North Farmers SACCO Ltd.
13. Meru South Farmers SACCO Ltd.
14. Michimikuru Rural SACCO Ltd.
15. Mugama Farmers Co-operative Union.
16. Nandi Farmers SACCO Ltd.
17. Ntiminyakiru Rural SACCO Ltd.
18. Taifa SACCO Ltd.
19. Taita Taveta Teachers SACCO Ltd.
20. Trans-Nzoia Teachers SACCO Ltd.

The Fund is also in the process of designing appropriate products that can address capacity and infrastructure requirements at the factory level. Handling and processing of coffee at the factory has a major influence on the quality of beans, and ultimately the price of coffee at the market.

With the rolling out of their second product, the numbers of farmers who will benefit from Coffee Development Fund’s services are bound to increase significantly, especially because of the nature of the product.