Kenyan coffee farmers have borrowed Sh5 billion from the Coffee Cherry Advance Fund, a 354.5 percent increase since mid-November 2023. New KPCU Managing Director Timothy Mirugi credits this rise to low-interest rates and streamlined borrowing processes, requiring only coffee and cherry as collateral.
The fund’s efficient disbursement and repayment system, managed by Co-op Bank’s Direct Settlement System (DSS), has expedited payments. Since October 2023, Sh1.5 billion has been processed through DSS, providing farmers with immediate payments from buyers.
Initially announced by former President Uhuru Kenyatta in March 2019, the fund was bolstered by an additional Sh4 billion from the Kenya Kwanza Government in December 2023 to aid the coffee sector’s recovery.
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