Officials from primary co-operative societies in Kisii County have been warned against going for advance loans from commercial coffee millers to pay advance payments to members for coffee beans delivered to the co-operative societies,
Instead, the officials have been urged to encourage their members to be patient until their coffee beans produce is sold for them to be paid.
The chairman of the Gusii Coffee Co-operative Union, Charles Abuya, has lamented that various coffee co-operative societies in the region were overburdened with debts due to advance loans extended to the officials by commercial coffee millers at high interest rates for members' payments before their coffee produce is sold.
Speaking to this writer in his office at Kahawa House in Kisii town, Abuya said that advance loans given to officials of co-operative societies by commercial coffee millers for payments of their members whose coffee produce was still awaiting auction was a burden to the farmers due to high interests on such loans.
Abuya challenged the officials to limit the advance loans from millers to assure farmers of high returns from their coffee produce and ensure their members are informed on what happens in the coffee auction market instead of pressurising their officials to go for advance loans from commercial coffee millers, amounts which will be deducted from farmers' coffee sales but at high interest rates.
"I am cautioning co-operative leaders from our union's affiliate co-operative societies against overburdening their members with unnecessary debts through advance loans from commercial coffee millers in the name of paying members for delivered coffee beans before sales are done to determine the rate of payments," said Abuya.