Gathoni Wamuchomba Slams Proposed Centralization of Dollar Proceeds from Coffee Sales
0
0
By John Kariuki
Githunguri MP Hon. Gathoni Wamuchomba has issued a firm rejection of a proposal by the Nairobi Coffee Exchange (NCE) to centralize U.S. dollar earnings from coffee exports—warning that the move would dismantle cooperative autonomy and strip farmers of their financial power.
The proposed changes would see dollar proceeds converted to Kenya Shillings and distributed via M-Pesa, bypassing farmer cooperatives that currently manage exchange negotiations and quality assurance.
“This plan will collapse farmer societies and cripple aggregators’ capacity to maintain quality,” Wamuchomba said following a stakeholder meeting at the Nairobi Coffee Auction. “Farmers roundly rejected this proposal.”
Wamuchomba raised red flags about transparency, timing, and the potential reemergence of financial scandals reminiscent of the 1980s and 1999 collapses of the Kenya Planters Cooperative Union (KPCU).
She also criticized the Capital Markets Authority (CMA) for imposing a 1.8% levy on coffee marketers without parliamentary input and condemned attempts to monopolize U.S. dollar transactions through a single bank.
“This is an outright NO,” she declared. “I will stand with farmers. If need be, we’ll return to the streets. Heshimu wakulima—respect the farmers.”
Wamuchomba’s bold stance underscores growing resistance among farmers and MPs to regulatory changes perceived to benefit financial institutions at the expense of grassroots producers.
About The Author
