New KPCU PLC was established as a State Corporation under the State Corporations Act Cap 446 and incorporated as a Public Limited Company pursuant to the provisions of the Company’s Act 2015, on 4 th Day of November, 2019. At cabinet level, the company is represented for the time being by the Cabinet Secretary for Co-operatives and MSME’s Development, who is responsible for the general sectoral policy and strategic direction of the company. The company is domiciled in Kenya and has branches in Nairobi, Sagana, Meru, Tala, Kisii, Bungoma and Kitale.
The Old KPCU was a cooperative union that was placed under liquidation on August 23 rd 2019 by the Commissioner of Cooperatives under the relevant law. New KPCU on the other hand is a public liability company registered by the Registrar of Companies in October 2019 to administer CCARF as well as to undertake milling, marketing, and warehousing of coffee while the process of liquidating KPCU is underway.
Introduce regular payments against coffee deliveries to break the lengthy systemic delays farmers’ experience. Others included a review of legal and institutional policies that govern the sector including enactment of new coffee regulations as well as reduction of the length and number of the value chain players, the establishment of a package subsidy program to cater for smallholder and small estate coffee farmers needs for fertilizer, planting materials, training of farmers, and rehabilitation of 500 cooperative pulping stations, the branding and promotion of Kenya coffee internationally and increase the amount of coffee sold through direct sales from 10 percent to around 30 percent in the next three years, the modernization of Nairobi Coffee Exchange to allow farmers to directly trade coffee in the exchange and promote price discovery mechanisms in the trading floor and provision of institutional support to various agencies that deal with the coffee sub-sector among them Coffee Directorate and Coffee Research Institute.
Under the draft regulations, only members of a registered cooperative society or a smallholder estate affiliated to New KPCU are qualified for an advance of the fund. This means that the fund recognizes the special place of Cooperatives in the coffee value chain and retains it. If the intent was to kill cooperatives, nothing could have been easier than to sidestep them in the operationalization of the fund. As for the creation of a milling monopoly in New KPCU, nothing could be further from the truth. Farmers are free to choose whomever they want to mill their coffee while at the same time qualifying for CCARF. The affiliation implied in the draft regulations strictly refers to the smallholder estates and not to the cooperative farmers (legal team to confirm). All farmers who are registered members of a cooperative society are entitled are qualified to apply for the advances whether they sell or mill their coffee through New KPCU or not.
A smallholder coffee estate, who is affiliated to New Kenya Planters Co-operative Union qualifies for 40% of the prevailing average sales price at the Coffee Exchange; A member of a registered coffee co-operative society qualifies for 20/- per kilogram of cherry delivered.
Coffee cherry advance revolving fund attracts a 3% administration cost which is one off irrespective of the duration.
The coffee Cherry Advance Revolving Fund shall be a first charge on the applicant’s sale proceeds for coffee. The administration cost shall be met by the applicant and be deducted from the coffee advance.
The advance will take 5 working days.
They are paid directly into their respectfull accounts:
- CASH: Mobile transfer
- Bank Accounts
- Sacco Accounts
- School fees paid directly to the institutions account.
- Cash in form of farm inputs
There is no limited number of times, as long as there is proof of fresh delivery of coffee.
You can use our social media accounts, our official numbers or our official email address all listed under our contacts page .
New KPCU is aware of the troubled past the Kenyan coffee farmer has gone through. It is also aware of the broad framework of coffee reforms that is underway. New KPCU is offering its commitment to put the farmer first, provide transparency, integrity, accountability, and traceability in its processes as well as its involvement in the coffee value chain. New KPCU will work together with other institutions in the coffee reform process to restore the fortunes of the Kenyan farmer. You can and you should trust New KPCU to deliver its mandate.