The Kiambu County government has found itself embroiled in a licensing dispute that pits big coffee companies against the farmers’ lobby.
The county government of Kiambu recently issued milling licenses to two major commercial millers: Sasini Plc Ltd and Kofinaf Company Ltd.
These licenses were granted despite the fact that both companies had previously faced license revocations as part of government-led reforms in the coffee marketing sector.
The National Coffee Co-operative Union (NACCU) has raised serious concerns about this move, asserting that it directly violates the Crops (Coffee) (General) Regulations 2019.
According to the regulations, a holder of a coffee buyer’s license or any other entity associated with such a holder should not be licensed as a commercial miller, broker, roaster, agent, or warehouseman.
However, the recent licensing of Sasini Plc Ltd and Kofinaf Company Ltd by the Kiambu County government appears to be in direct contravention of these rules.
Sasini Plc Mill is affiliated with Sasini (K) Ltd, which holds a buyer’s license issued by the Agriculture and Food Authority (AFA). Sasini (K) Ltd has actively participated in coffee auctions as buyers.
Kofinaf Company Ltd Mill is affiliated with Coffee Management Services (CMS) and C. Dormans Ltd. CMS manages Kofinaf Company Ltd in Kiambu, and C. Dormans Ltd is also licensed as buyers by the AFA and has actively participated in coffee auctions.
The NACCU, representing over 800,000 small-scale coffee farmers, is urging Deputy President Rigathi Gachagua (who oversees coffee sector reforms) to take action.
They want the AFA and the Coffee Directorate to suspend coffee buying licenses issued to entities that have already been granted buying permits.
Additionally, they seek an inquiry into how the licensing occurred, questioning whether there were any commercial benefits or incentives involved between the licensees and county government officials.
