The Coffee Bill, 2021 at a glance

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.

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