Relief for Cooperatives, SACCOs as Government Approves Sh6.8 Billion Debt Waiver for Coffee Farmers

The government has announced a Sh6.8 billion debt waiver for coffee farmers.
This move, which will benefit coffee cooperatives, SACCOs, and other creditors, was approved during a cabinet meeting at State House chaired by President William Ruto on Tuesday.
“Under this program, the meeting sanctioned the write-off of historical debts amounting to Sh6.8 billion owed by coffee farmers nationwide,” a statement seen by Sacco Trend read.
The decision is part of a broader strategy to implement coffee sector reforms and support the financial stability of farmers.
To facilitate the settlement of these debts, the cabinet has mandated that coffee cooperatives, SACCOs, and other creditors submit a comprehensive list of indebted farmers to the Ministry of Cooperatives within seven days.
This list must include all supporting documents to verify and process the payments.
The cabinet has issued a stern warning against any fraudulent or fictitious claims, emphasizing that strict action will be taken against those involved in such activities.
This measure is designed to ensure that the funds reach the genuine beneficiaries and bolster trust in the system.
The cabinet also urged the parliament to expedite the enactment of governance reforms.
These reforms aim to establish institutional safeguards, including a requirement that borrowing by cooperatives can only be authorized by farmers during annual general meetings. This step is intended to enhance transparency and accountability within the sector.