Kenya has received Sh 1.5 billion for specialty coffee from World Bank

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 World Bank has funded Kenya with sh1.5 billion to improve on the production of specialty coffee.

The capital will be disbursed to eight counties that produce more than 70 percent of the national coffee. It will also be used to finance co-operatives process such provision of seeds and subsidized fertilizers to farmers so as to boost productivity.

As announced by the Agricultural cabinet secretary, Mr. Munya, during the launch yesterday, part of the funds will also be used in marketing. There are plans underway to link farmers to direct the market so as to get good returns and exclude the issue of cartels.

Currently, the country sells only 12 percent of the produced coffee to the World market through direct sales and more than 95 percent through an auction at the Nairobi Coffee Exchange.

The World Bank project is expected to raise the production of coffee from the current 40, 000 metric tonnes a year to 100, 000 metric tonnes or more.

The funds came in when President Kenyatta had just extended the term of coffee sector by one more year just last week to enable it to finalize the national coffee policy.  The term was to end this April.


About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: Contact: +254 780216631

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