Agriculture Cabinet Secretary Mithika Linturi, on Friday, June 9, announced the revocation of licences belonging to multinational companies in a move aimed at reforming the coffee sector.
The CS made the announcement in Meru County after Embu Governor, Cecily Mbarire, lamented over three multinational companies that were allegedly taking advantage of farmers.
According to Mbarire, who addressed the conference chaired by Deputy President Rigathi Gachagua, the companies dominated all industry sectors, from milling to coffee marketing.
She claimed that the companies had formed subsidiary entities in a move aimed at duping the government agencies enforcing regulations.
"Our coffee sector is predominantly run by three companies. They mill through separate companies and then transform themselves into marketers and buyers.
"If we do not deal with these cartels, we will be wasting two days here. It is about time we face these people on the face and say enough is enough," she lamented.
"We cannot allow this to happen. If they want to take me to court, they can do it. We will sit down and revoke those licences so that we have a way to end that cartel nature," Linturi responded.
On his part, Trade Cabinet Secretary Moses Kuria supported the move adding that fresh registration of the companies and their subsidiaries would help regulate the sector.
However, he warned that the government's intervention would face opposition even as he convened a meeting to discuss strategies for the government's countermeasures.
"Next week, as Linturi revokes licences, I will convene a meeting with governors to ensure that those cartels do not sabotage us at the auction and marketing level of our coffee," he stated.
Gachagua, on the other end, maintained that the government would be firm, adding that the Kenya Kwanza administration had plans of uplifting the lives of farmers in the country.
“I want to tell the coffee cartels that their time is up. They must give way and align with us, or we will get you out. It is not business as usual.
"This is the administration that will sort out the issues of cartels in coffee, tea and milk and restore the dignity of the farmer,” he maintained.
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