Githunguri MP Gathoni Wamuchomba now wants investigations launched into alleged diversion of Sh2.1 billion from the Coffee Cherry Advance Fund.
In an interview with the Star, Wamuchomba expressed regret that funds meant for farmers could be diverted without parliamentary oversight.
“This is absurd,” Wamuchomba said. “As a representative of farmers, I want to know who cleared this money to be moved from the Coffee Cherry Advance Revolving Fund to a commercial bank. I can confirm that no such request came to Parliament and I'm actively involved in coffee matters.”
The Coffee Cherry Advance Revolving Fund (CCARF) was established to provide affordable, sustainable and accessible cherry advance to smallholder coffee farmers with land under coffee not exceeding 20 acres.
New KPCU was given the mandate to manage and administer the fund.
The mandate is as per the Public Finance Management Act (Coffee Cherry Advance Revolving Fund) Regulations 2020.
The fund does not accrue any interest but farmers are only charged a one-off 3 per cent administrative fee.
Wamuchomba emphasised the need for transparency, urging the Ministry of Cooperatives to look into claims that the funds were allegedly invested in bonds.
“Will farmers receive dividends from this interest?” she posed.
The MP claimed that many coffee farmers have applied for the Cherry Fund but are yet to receive any assistance.
“Farmers are queuing at KPCU offices desperately seeking their funds. The government claims it buys Treasury bills because farmers are not absorbing the funds, but I can tell you that’s not the case. In Kiambu, farmers are eager to access this support,” the MP said.
Wamuchomba commended the auditor general and her team for their diligence in uncovering the issues.
“If it weren’t for your efforts, many of these mismanagement cases would remain hidden,” she remarked, urging for continued scrutiny of government actions to ensure that the needs of farmers are prioritised.