Nyagah supports establishment of coffee milling factory in Bungoma County

Written by Protus Simiyu and Rosemary Wachiye 2011-12-20 18:49:00 Read 417 Times

Minister Joseph Nyagah handing over the teachers sacco certificate to the chairman of the sacco, Gabriel Wasike. [Photo|Rosemary Wachiye|west Fm] The Minister for Cooperative Societies and Marketing Joseph Nyagah has urged the Bungoma coffee farmers to establish a Sh40 million coffee milling factory in Bungoma County as a way of locking out cartels in the coffee industry.  Addressing leaders of cooperative societies in Bungoma town on Monday, Nyagah was opposed to a bank loan saying the money can be easily raised through deductions from farmers owing to good prices in the coffee industry.  Nyagah told farmers that the only best way of locking out cartels in the coffee industry is through formation of huge marketing farmers association while pointing out that the government is committed to making sure that 15 per cent of coffee produced in the country is marked by farmers themselves in order to maximize profits.  Nyagah revealed that over 60 pc of coffee is controlled by an individual cartel with several brand names who want to maximize profits through offering low prices at the expense of farmers.  ‘’World coffee prices have always been good but a lot of money has been going to cartels,’’ Nyagah said.  He assured farmers that the future of coffee is bright with a minimum of Sh100 per Kilo as a result of raising demand in China and India.  As such, he told farmers that the government had waived all old loans to necessitate the industry move forward while revealing that both Bungoma Union and Mt. Elgon Union formerly Sasuri have already received Sh11.4M out of a total of Sh35.8M old loan.  Thus he urged top management of the respective factories to discuss with farmers how the money will be utilized as the second phase of the money will be issued in relation with how the first disbursement was utilized.  Further, the minister pointed out early next year his ministry will hold a workshop with Mps from coffee growing areas with the aim to help assist right off through a bank loan a total of Sh1.7 Billion as an old debt for coffee large estate farmers.  He said his ministry is also geared towards re-structuring K.P.C.U from mere buildings into money generating houses to enable farmers earn dividends.  Nevertheless he appealed to leaders in Bungoma County to support coffee sector saying there is a possibility of coffee farming becoming the backbone of the Counties economy.  Earlier the Minister witnessed the official launching of the Bungoma Teachers (SASRA) Sacco to become a Sacco -Society Regulatory Authority that is recognized by the government as a commercial Bank.  Nyagah said that to ensure money remains in Bungoma County, its good for all cooperatives, businessmen and other stakeholders from the County to bank with the Bungoma Teachers Sacco and hence enhance county development.  He called upon management of the cooperative Sacco together with its members to set up branches of the cooperative in other parts of the country to tap enough income and get as many customers as possible that will facilitate its growth into a bigger banking facility to be able to match up to the competition from other commercial banks in the country.  Prior to next elections that will turn the government into counties; he said the setting up of the banking institutions in the county will foresee development in the economy of the Bungoma County as a whole and called upon all residents in the county to support the Bungoma Teachers Sacco.  Also present at the two events was the Assistant Minister in the Office of the Prime Minister who is also the Member of Parliament for Kanduyi Alfred Khangati and Assistant Minister for Lands Bifwoli Wakoli.