The Government has been urged to consider clearing a debt waiver of outstanding Sh 24 million owed to the Gusii Coffee Farmers Co-operative Union (GCFCU) by its affiliate 27 primary coffee co-operative societies.
The Union's Chief Executive Officer, Robert Mainya said that the Government had pledged to waive Sh 47 million debts owed to the union by its affiliate primary co-operative societies.
As at June 2010 the Government had waived Sh 23 million on behalf of the societies, but to date the Government is yet to clear the outstanding debt waiver of Sh 24 million.
"The union management appreciates the Government's gesture to waive debts owed to the union by our affiliate primary co-operative societies. We still appeal to the Government to consider clearing the outstanding debt waiver of Sh 24 million as part of the debt waiver pledge agreed upon," stated Mainya.
Mainya said the debt waivers had relieved the union's affiliate co-operative societies the burden of servicing their debts they owed the union, translating to improved coffee earnings as much of coffee proceeds formerly went to servicing of the loans.
The CEO warned managements of the union's affiliate co-operative societies to desist from taking huge loans and advances from commercial coffee millers, noting they were burdening small-holder coffee farmers in the region and denied them enjoyment of fruits from coffee farming.
Taking of huge loans and advances by co-operative societies' management committees from commercial millers, Mainya regretted it enslaved coffee farmers with debts and translated to poor earnings from their coffee crop which is one of the reliable cash crops for majority of the farmers in Gusii region.
"I am encouraging management committee officials from our affiliate co-operative societies to scale down debts as they lead to poor coffee proceeds, discouraging farmers from venturing into coffee farming," Mainya said.