20/07/2025
Direct settlement system or DSS is a process that has served the coffee industry for a long time, coffee is sold in the market in dollars and the proceeds is sent to the co-operative bank dollar account where most coffee cooperative societies have a dollar account opened for this purpose, the respective management committee bargain to the best dollar price currently in the market, after the agreement on the best price to sell, the money is converted into Kenya money, a certain percentage of this amount is transferred to the society general account, the account which holds the funds needed to run the society in the maintenance of equipment, paying employees salaries and other needs that keep the society on its feet. The remaining amount is deposited in the account of the factory that owns the coffee sold. After all the coffee has been sold, the total amount is then divided and sent to the farmers bankers I'e if the total number of famers in Enea Sacco are twenty and their total amount of sale is fourty thousand, a list of the farmers with the money owed against their names is taken to Enea, Enea then deposite the amounts into respective accounts where farmers can then withdraw their money.
DSS is working as it is and has been working just fine as it is.
If the cooperative minister wants to pay farmers directly to their MPesa, how will the funds for society general be acquired? How will the cooperative societies be ran? This will effectively cut the Sacco society's life line, some with heavy loses as they will not be able to recover loans.
IF ITS WORKING WHY FIX IT?
