The Coffee Bill 2021 is undergoing public participation by the National Assembly. Some of the proposed reforms in the Bill include:
a) Capping the tenure of cooperative officials to a maximum of two terms of three years each;
b) Capping the monies to be deducted from proceeds of coffee sale to support operations of cooperative societies to a maximum of 5%, and for any further requirements to be approved in an AGM with the concurrence of the Cabinet Secretary;
c) Capping of the interest rate for loans advanced to coffee farmers for capital development to a maximum of 5%;
d) Capping the milling losses to a maximum of 18%;
e) Transferring the obligation of selecting a miller-marketer to coffee farmers through an AGM held at the factory;
f) Combining the commercial milling and Marketing Agents licenses into one Miller-Marketing License;
g) Obligating Commercial Milling operations to take place in the presence of the grower;
h) Establishing a Direct Settlement System for purposes of receipt of all payments from coffee and directly settle legitimate obligations to value chain actors and the balance paid to farmers directly;
i) Outlawing marketing agents from advancing loans to farmers;
j) Outlawing marketing agents from doubling up as coffee buyers either directly or indirectly;
k) Institutionalization of the Nairobi Coffee Exchange into the Bill; and
l) Establishment of the Coffee Research Foundation and Coffee Board
among other institutions.
