Liberalise Coffee Sector, Government Told

Sasini Tea and Coffee Company yesterday petitioned the Government to accelerate liberalisation of the coffee sub-sector.

Sameer Group chairman, Naushad Merali, said a liberalised coffee sector would offer farmers alternative channels of selling their produce.

"One wonders why there is no move to fully liberalise the coffee sub-sector like the telecommunication sector," he said.

Merali was speaking during the launch of Sasini coffee and tea brands in Nairobi.

The company unveiled three tea blends, six coffee blends and instant coffee, making it the first Kenyan coffee and tea primary producer to launch value-added products in the local market.

Sasini managing director, Peter Muthoka, said the entry into the local consumer market was part of a strategy to cushion the company against against the unpredictable market forces.

"We have surveyed the market and realised that there is room for quality products," he said. Muthoka said as part of the value addition initiative, Sasini will set up a coffee mill to process coffee parchments.

He said the mill should be ready to start operations in the next two months.

"We plan to produce, mill, pack and export coffee and as soon as the Government fully liberalises the sub-sector, we should provide coffee marketing services," he said.

Muthoka wondered why plans to open a second marketing window had stalled yet farmers and some millers were holding coffee, which they could not market unless they went through the auction system.