………Kenya’s coffee industry brings in about US$200 million (Dh734m) per year, making it the country’s third largest export, after flowers and tea. According to the Kenya Coffee Board, 60 per cent of the coffee is produced by small-scale farmers who have less than two acres of coffee plants. The industry employs about a million workers throughout the country………..

Almost all of the 700,000 small-scale coffee farmers in Kenya are organised into co-operatives of about 2,000 farmers each. These co-ops help farmers get a better price for their crop either at auction or through direct sales to buyers in Europe and North America

Coffee marketing has failed farmers because the profits end up with the middle men, export companies and the co-operatives. However, that is the nature of capitalism………exploitation of workers. During this recession many of you in developed countries now understand the system……companies are there to make money and workers…….even Caucasian workers…….are dispensable. I read about it all the time and see it on TV.

“AGRICULTURE-KENYA: Finally, a Windfall for Tea Farmers
By Suleiman Mbatiah

NAIROBI, Oct 30 (IPS) – Despite the sweltering sun and with a heavy load on her back Mary Muthoni strides to the tea buying centre with joy and pride painted on her face. “This is a different year,” she smiles, hurriedly greeting other women farmers at the centre. For them, the story is the same: blessings in times of calamity.

The Kenya Tea Development Agency (KTDA) has announced a major increase of 28 percent in farmers’ earnings. Kenya is the world’s largest exporter of black tea. It produced 345 million kg in 2008.

In what is a record year for small-scale tea farmers in the country, the average rate payable per kg of green leaf delivered to factories has increased significantly. “Last year, we could only go home with a total of 0.33 dollars per kilogram but today everyone is leaving with 0.47 dollars in most factories in the country,” explains the overjoyed Muthoni.

Income from tea reached an unprecedented 332 million dollars for the 2008-2009 financial year, up from about 265 million dollars for the previous year.

“We are now able to pay our casual tea pickers and be left with something to feed and educate our children,” Muthoni adds.

Previously, farmers got a negligible fraction of the overall income. After paying the tea pickers at 0.07 dollars per kg, the rest of the cash had to cover overhead costs like fertilisers, pruning, transport, weeding and other costs.

Of the 332 million dollars, about 106 million dollars has already been paid out to farmers. During this month the balance was to be paid out. In all, this represents a major increase over the 146 million dollars earned the previous year.

The second payment will be paid at an average rate of 0.33 dollars per kg of green leaf, as opposed to the 2007-2008 average rate of 0.19 dollars per kg of green leaf.

KTDA’s managing director, Lerionka Tiampati, says the record earnings by KTDA’s 500,000 small-scale farmers are the rewards of efficient factory processes; improved auction prices caused by high global demand that has been driven by the prolonged drought; and favourable exchange rates.

“As the drought persisted over the year, production fell by as much as 30 percent, helping to push up prices at the auction,” Tiampati explains.

He adds that the reduced global production of green leaf tea saw demand for Kenyan tea surge at the auction and prices improve fractionally. Prices have increased by up to 30 percent in the last year. ……….”

The writer of this article probably just looked at the stock markets and made his/her conclusions based on that. Foreigners own all wealth in Kenya? Keep on dreaming!!! I guess you must be White and imagine that only White people can create wealth. Let me open your biased mind: At independence, Kenya’s development motto was “Africanization and Kenyanization.” The then President devised a way to get Kenyans into economically productive sectors through investment in co-operatives and parastatals. For example, 70% of Kenya’s tea is produced by small scale farmers in co-operatives and bought each day by Kenya Tea Development Authority, which processes and markets tea on their behalf. The farmers are paid for the first delivery to the factory before export; after export, farmers are paid the second payment which is usually in Millions. Yes, rural folks earn thousands from their tea and not the few tea factories owned by foreigners. Take it from me, a Kenyan economist. KTDA has 59 factories which it manages on behalf of farmers…….indeed, they are even now building some hydro power dams to supply their own power. KTDA is one of the best run companies in Kenya.

The same applies to the dairy industry……90% of the milk is supplied by small scale ordinary Kenyans to co-operatives which sell it to the two major milk processers in Kenya, one a private indigenous Kenyan company, BrookeSide, and the Government owned, Kenya Co-operative Creameries. Kenyan dairy farmers in rural areas supply milk to those who do keep dairy cattle, or whose cattle are not calving………few people depend on processed milk, even in cities.
In coffee, 70% of the coffee is produced by small-holder farmers, supported by farmer’s co-operatives under the umbrella of the Kenya Coffee Planters Union and the Coffee Borad of Kenya, all government parastatals that supoort the sector. These are all funded by small surcharges paid by farmers called cess payments. Coffee has produced many black African millionaires who own many of those modern office buildings in Nairobi. The rest 30% of the coffee is produced by large scale coffee estates, 80% of which are owned by Black Kenyan tycoons thanks to the Agricultural Finance Corporation, a parastatal started by the government in the 70’s to provide funding for agricultural entreneurs.
In tourism, the government started the Kenya Tourism Development Corporation to fund indigenous hoteliers. Many tourist hotels may be foreign owned but a certain percentage belongs to KTDC by law. There are hundreds of hotels that are party-owned by KTDC.
As for horticulture, a few foreign companies dominate but many of them subcontract to kenyan small-scale farmers…….Kenyan farmers know how to copy other entrepreneurs and never allow an opportunity to make a good living pass them by. We have the Horticultural Crops Development Authority started by the government to help local farmers get marketing opportunities abroad ……..the Kenya Export promotion Council works on behalf of Kenyans…..small holder exporters. The Fresh Products Exporters Association of Kenya export horticultural producta and a significant number in the group are indigenous Kenyans. The EPC subsidizes them to travel overseas to find markets for their products.

At Independence, there were few manufacturing companies that were owned by Black Kenyans and the government started the 4 industrial development financing institutions to provide loans to those who wanted to venture into industrial manufacturing. We are not Japan yet but a few manufacturing companies are partly owned by Kenyans…..and I mean indegenous Kenyans. Those companies mentioned like Sasini, Rea Vipingo, Williamson are those that foreigners like to invest in are not even attractive investments in the stock exchange.

All those companies mentioned above and owned by foreign companies, there is a probability that the governement, through one of it’s companies, such as ICDC, DFCK, IDB-Industrial Development Bank-own a significant portion oof the investment. when possible, the government sells it’s shares to some Kenyan-Black tycoons…….and I assure you, they are not few! Merali is a large investor but he does so because he partners with rich indigenous Kenyans. Even as I write, I recently read about the Kenya |export processing Zone Incubation programme where indigenous Kenyans are encouraged to produce for export market and are guided by the EPZA to grow their markets and produce and package for external markets. There are few indigenous Kenyans here, probably because many are served by the Coffee Board, KTDA, KCC and Brookside so they may not have realized the benefits of manufacturing in an EPZA zone. There is also the Kenya Industrial Estates, a funding agency which builds industrial sheds in many towns and cities, and invites indigenous Kenyans who was to participate in manufacturing. It has been quite successful as these small industrialists act as sub-contrators for the larger companies.
Kenya also has a parastatal-public enterprise-that funds agriculture, agricultural co-operatives and livestock farmers. Universities in Kenya are also working to help local Kenyans to venture into Aquaculture, mushroom farming, honey processing, milk processing and the government has alarge group of extension officers in all districts who are paid to help farmers and other rural dwellers to try new income-generating activities. Best of all, most Kenyans own a piece of land somewhere in a rural area and many of them grow their own food. We may be at the mercy of the weather at times…….even other countries too……but our people are no slaves to anyone. Donors compepte with each other to fund some development projects but I see this as a strategy to keep on maintaining the right to be involved in Kenya’s political economy.
Maize, the chief staple crop is grown by indigenous Kenyans….99%. We have a Kenyan owned Kenya Seed Company which was started in the 70’s to provide high quality seeds to farmers and has been doing fine…..even it has expanded to other East African Countries. The only thing that riles me is the entrance of GMO promoting-companies in Kenya and I hope Kenyans will resist GMOs based on their taste and what they hear whispered all around them about their impact on health and in particular, fertility……Africans are smarter than many people give them credit…….that is why they survive crisis after crisis in the past 500 years since slavery and colonialism.

So, UNIVOICE, there are no slaves in Kenya. Unless they enslave themselves with fear to take risks, then their opportunities will be limited. Unless they allow insecurity and tribal issues to escalate then everyone will be like a prisoner. I live in N.America, have an M.A, B.A. 15 years work experience, yet I am not employed, probably because I am an immigrant….a legal one. I regret the day I left Kenya and a good public sector job, having faith that my education would be valued for what it is and enable me to earn a decent living in this rich develpoed country.