Kenya races to comply with European Union Forest rules to protect farmers’ earnings

By JOSEPH WANGUI (DPCS)

The Government has stepped up measures to comply with the European Union's Zero-Deforestation Regulations (EUDR) in coffee trade.

The regulations require companies trading in coffee to conduct extensive diligence on the value chain to ensure that the production of the crop does not originate from lands that have been deforested.

Deputy President Rigathi Gachagua said the government has mobilised resources to ensure compliance with the regulations before the December 30th, 2024 deadline and ensure that Kenyan coffee is not locked out of the European Union market.

“This will enable us to retain the profitable European Union market which accounts for over 55 per cent of our coffee,” Mr Gachagua stated.

He spoke at the opening of the 2024 Central Kenya National Agricultural Show in Kabiru-ini grounds, Nyeri County.

The European Union, a global major economic bloc, introduced the regulations to limit the impact of its market on forest degradation and biodiversity loss and promote deforestation-free products.

At the same time, the Deputy President asked Coffee cooperative societies to publish and make known details of their financial costs and deductions to their members.

This comes amid heightened efforts to entrench efficient financial management practices in the cooperative movement through legal, regulatory and policy reforms alongside the coffee subsector.

Mr Gachagua asked the Sacco management officials to make full disclosure of the financial costs.

He explained that this will enable farmers to question any costs they find suspicious, thus contributing to better governance and accountability of the societies.

He said this as he also called on political leaders to keep off the ongoing reforms in the agriculture sector.

"I have asked the Ministry of Co-operatives and the Ministry of Agriculture to fast-track the administrative and legal actions to enhance corporate governance, transparency and accountability in cooperative societies.

“This includes direct payment to coffee farmers from the Direct Settlement System (DSS). For full disclosure, co-operative societies must publish and make known their costs and deductions to their members," Mr Gachagua said.

Mr Gachagua, who was tasked by President William Ruto to lead reforms in the Coffee Sub-sector, said measures are being taken to ensure the coffee sector is aligned with the European anti-deforestation regulations.

Mr Gachagua said the government is keen in ensuring cooperative societies end wastage and are efficiently managed and profitable like a business enterprise.

In his speech, the Deputy President also highlighted the government's interventions in various crops.

He said the government is addressing challenges in the Coffee, Tea, Dairy, Avocado, and Macadamia sub-sectors by pushing radical reforms.

"In supporting our small-scale coffee farmer, we have also availed Sh3 billion for the Coffee Cherry Revolving Fund and a further Sh2 billion for coffee debt waivers.

“It is, however, unacceptable that despite rigorous reforms of transforming the coffee value chain, governance of cooperatives remains the weakest link in freeing and empowering our farmers," he added.

Regarding the Tea sub-sector, the Deputy President said the government has made progress with the ongoing reforms since the Kericho Tea Conference last year.

In the Macadamia sub-sector, he said, the government has initiated a plan for full-scale lasting reforms- informed by robust farmer engagements.

"We are ready to discuss with processors and exporters on minimum returns equivalent to their sweat," he said.

In the Avocado sub-sector, the government has implemented crucial interventions, such as the removal of red tapes and streamlined processing and inspection for export.

"We are also organising Avocado farmers into cooperatives for better economies of scale, as we expand our market into the United States of America, Japan, India, Malaysia, among others," he added.

On dairy farming, the Deputy President said the government is reforming the sub-sector and is implementing the minimum pay per litre at Sh50 alongside prompt payment.