Government Boosts Coffee Farmers with Favorable Policies Amidst US Dollar Rally

Coffee farmers are poised to benefit from the strengthening of the US dollar against the Kenyan shilling, thanks to a new government policy implemented in their favor.The cornerstone of this initiative is the Direct Settlement System (DSS), a novel payment method that enables coffee farmers to receive their payments directly into their bank accounts.

Prior to the introduction of the DSS, coffee farmers faced challenges as they had to rely on marketing agents or cooperatives to sell their coffee, subsequently enduring prolonged waits for payment.This posed issues, as some agents were unscrupulous, withholding payments or failing to disclose service fees for months on end.

With the advent of the DSS, farmers will no longer need to appoint marketing agents or brokers, streamlining the payment process by enabling direct transactions through banks.This not only ensures a more efficient and timely payment system but also mitigates the risk of unscrupulous practices by intermediaries.

A notable feature of the DSS is its real-time transmission of trade details to clearing corporations, enhancing transparency in the entire process. This aspect is particularly beneficial for commodity traders, as the system is reputed for its honesty and reliability.

The announcement of this initiative was made by the Cabinet Secretary of Public Service, Moses Kuria, via his official Twitter page.

In his statement, he urged coffee farmers to take advantage of the strengthening dollar by leveraging the DSS, emphasizing the importance of opening dollar or euro accounts at their banks to negotiate favorable exchange rates independently.

”Dear Coffee Farmers. While importers cry about the strengthening dollar against the Shilling, you are supposed to be celebrating. The Government has introduced the Direct Settlement System (DSS) to pay farmers directly not through brokers or Cooperatives. Please do not trust anyone to convert your dollars or Euros. Rush to your bank today and open your dollar or euro account and negotiate for yourself the best rate, ” he stated.

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