Govt Announces Ksh18.5 Million Bailout of Kimuri Coffee Factory in Murang’a County

Ruto
A collage of President William Ruto and a bag of coffee beans.
Photo
Canva, PSC

The government has set aside Ksh18.5 million to revive the Kimuri Coffee Factory in Kairi Village in Murang’a County, which has become dormant. 

This is part of the efforts by President William Ruto to maintain development projects and keep growth in the coffee sector in Mt Kenya.

According to the Cabinet Secretary for Cooperative Development, Wycliffe Oparanya, the government intends to inject Ksh18.5 million into the factory in the next financial year, starting in June 2025.

“Part of these funds will be used to support the revitalisation of the operations of the Coffee Cooperative Society,” said Oparanya.

Oparanya
Cooperatives CS Wyckliffe Oparanya (middle) joins cooperative leaders in Elgeyo Marakwet County, February 27, 2025.
Photo
Wickliffe Oparanya

According to a response handed to the Senate by CS Oparanya, said the factory needs dying tables, electricity, and other coffee pulping machinery and facilities, all of which the government has said will be reconstructed or serviced where needed.

Beyond the funding, the government will also facilitate fresh elections to re-constitute the management committee, build capacity for the newly elected committee, and sensitise coffee farmers within the area on the need to patronise the services of the cooperative.

The government will also facilitate the reconnection of electricity to the coffee factory and the coffee farmers within the catchment area. 

The factory owned by the  Kimuri Farmers Cooperative Society Ltd is among several that have been forced to close due to various challenges. Recently, many coffee factories in the region, including six linked to the Iyego Co-operative Society—Nginda, Kariguini, Gikiuga, Kahaini, and Irembu—have converted to collection centers to cut costs amid declining production.

In the broader Mt Kenya region, other factories like Kagumo, Gaaki Central, and Thageini are on the brink of closure due to reduced output. This decline is largely attributed to poor payment structures, high input costs, and management issues impacting the coffee industry significantly.

 Kimuri Coffee Factory has become dormant after the cooperative society split from the larger Njora Farmers Cooperative Society Ltd, which led to unsustainable operations arising from low active membership, low coffee production, and poor governance.

In his tour of the Mt Kenya region this week, President Ruto praised his government’s efforts to reduce the coffee payment timelines, reducing the waiting period from six months to five days for cooperatives.

He also announced that the government will ensure that payments go directly to farmers within five days by June.

“The coffee used to be paid after 6 months; today, it is paid after 5 days to cooperatives. My plan by June is that the money will not be paid to cooperatives; it will be paid to the farmer after 5 days. The price of coffee has risen to Ksh110,” Ruto said.

A photo of a woman a coffee plantation in Kenya
A photo of a woman on a coffee plantation in Kenya
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PERFECT DAILY GRIND