Buganda Kingdom through Mwanyi Terimba Ltd (MTL), a company owned by the kingdom, has started buying coffee from farmers.
In a letter dated July05 to County Chiefs and their deputies, Joseph Kawuki, the Minister for Local Government in Buganda Kingdom, informs them that the company started buying coffee in June this year. He says the company offers relatively better prices compared to prevailing market prices.
The purpose of the letter is to urge County Chiefs to inform farmers in the various counties of Buganda about this opportunity. The farmers are urged to bring the coffee to the company offices in Namanve where they are paid for the coffee instantly.
The Kingdom has already secured stores and warehouses where coffee will be stored, with the major one located in Namanve Industrial Area.
The development comes after Government through Ministry of Finance signed a controversial coffee deal with Enrica Pinetti, the proprietor of Uganda Vinci Coffee Company.
In the controversial agreement, Uganda Vinci Coffee Company was handed the monopoly over the purchase and export of premium coffee from Ugandan farmers, which powers would see the company with the sole decision to determine the price of coffee.
Pinetti was also given a 10 year tax holiday including paying import duties, value-added taxes, excise duty, stamp duty and corporate income tax, and for mandatory taxes that the company can’t avoid, these will be borne by Ugandan taxpayers.
In April this year, Buganda Kingdom Premier, Charles Peter Mayiga condemned the central government’s decision to the controversial coffee agreement with Uganda Vinci Coffee Company Limited.
Mayiga said that the government must also recognize the role of the Buganda Kingdom in coffee development and as a key stakeholder in the development of Coffee and the government should seek to advise from them before signing any agreement.
Mayiga however encouraged people not to lose hope because of the new deal and encouraged them to continue growing coffee.
In 2016, Mayiga under the Kingdom of Buganda inaugurated a campaign dubbed “Emwanyi Terimba”. Mayiga engaged the Uganda Coffee Development Authority (UCDA) and formed a partnership in an attempt to boost coffee growth in Buganda Region.
The UCDA was to provide seedlings and partner with the kingdom’s Buganda Cultural and Development Foundation (BUCADEF) to provide technical knowledge on the new development while Mayiga was supposed to ensure people embrace growing coffee again.
Mayiga revealed that people have embraced the campaign, and coffee growing has increased by 35%.
