Co‑operative Bank has received regulatory clearance to continue processing billions in coffee payments under the Direct Settlement System, effectively pausing a shift to direct farmer payments.
The Nairobi Coffee Exchange has suspended plans to move funds straight to growers’ accounts, citing a need for further guidance after concerns from farmers and co‑op societies surfaced.
The bank’s DSS platform, in operation since August 2023, ensures timely, verifiable payments routed through co‑operatives, safeguarding essential services like input supply and loan support.
Farmers in Murang’a and Kirinyaga raised alarm that bypassing co‑ops could collapse community structures.
With the current system intact, millions in coffee proceeds continue flowing through familiar channels, offering stability amid fears of disruption.
Stakeholders now await regulatory clarity as the balance between efficient farmer payments and co‑operative viability hangs in the balance.
Written By Ian Maleve
