Business Daily (Nairobi)
26 June 2009
editorial
The Coffee Board of Kenya must exercise integrity and sobriety as it issues business licences to industry players for the 2009/10 season.
The performance of the once flourishing sub-sector has taken a serious knock in the recent past, thanks to wayward management and trade malpractices by cartels that have invaded the industry.
The result of this has been disillusionment among growers who no longer have the courage to sink huge investments into an occupation that has little or no returns for them.
The all too common cry today among growers and suppliers alike is that their dues are either withheld by some firms that don't meet statutory obligations or lost as a result of manipulation of prices.
Agriculture minister William Ruto has already threatened to dissolve the weekly tea auction in Mombasa to weed out exploitation as per the recommendations of a task-force appointed to look into the problems facing the sector.
The coffee auction in Nairobi has also experienced its fair share of controversies and should equally be placed under the spotlight to ensure all operations are above board so that producers can share the benefits.
Overall, sloppy management over the years enabled the growth of graft in the coffee industry, prompting the new reform driven Coffee Act 2001. The challenge is now on the board to ensure the provisions of the new Act are implemented to the letter.
Rogue dealers and indebted players must not be allowed to continue operating in the industry if the confidence of the growers is to be won back. Business licences should only be issued to deserving individuals or firms that have shown the capability for integrity and steadfastness in their operations.
Like any business, investor confidence would be critical in pushing forward the coffee industry and any stumbling blocks must be cleared at whatever cost. However, farmers must also take a pro-active role and hold their representatives and business partners accountable.
A notable flaw has been ineptitude in the election of officials of cooperative societies which link growers with the market. The nature of leaders mandated to run such offices directly reflects on the kind of services they offer and proper vetting must be done to ensure only those with a clean management record are handed such tasks.
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