Nairobi: The government has embarked on implementing a series of reforms in Kenya’s coffee sector, aiming to enhance farm income and ensure timely payments. The New Kenya Planters Cooperative Union (New KPCU), led by Chairman Daniel Chemno, is spearheading these initiatives, which include coffee milling, marketing, distributing the coffee cherry fund, subsidizing farm inputs, and educating farmers.
According to Kenya News Agency, Chemno highlighted that despite a 30-year decline in coffee production, the sector is witnessing a resurgence due to ongoing reforms. Over 590,000 farmers have benefited from the government’s Coffee Cherry Advance Revolving Fund, receiving Sh9.5 billion for instant payments upon cherry delivery. Farmers can access Sh40 per kilo of cherry fund under this initiative.
Chemno emphasized that debt relief of Sh6.8 billion, along with affordable inputs and the Direct Settlement System (DSS), has ensured that coffee farmers receive fair and timely payments, restoring dignity and financial stability. The ongoing East African Coffee Market and Conference aligns with Kenya’s coffee revitalization efforts, focusing on rebuilding confidence, restoring productivity, strengthening cooperatives, and empowering farmers.
The government is also promoting direct sales by enabling cooperatives and estates to bypass auctions and directly reach global buyers. Chemno mentioned plans to increase coffee production from 50,000 MT to 151,000 MT by 2027/28, raise yields from 2 kg/tree to 6 kg/tree, boost national coffee earnings from Sh35 billion to Sh100 billion by 2028/29, and increase clean coffee payments from Sh86/kg to Sh130/kg by 2028/29.
Henry Kinyua, an advisor within the President’s Economic Transformation Secretariat, noted that the reforms have restored optimism and positioned Kenyan farmers to compete effectively in regional and global markets. He highlighted that boosting productivity from 106 to 200 million coffee bushes, with each producing an average of six kilos, could rapidly increase the country’s output to 150,000 metric tonnes of clean coffee.
Kinyua also addressed the implementation of the Coffee General Regulation 2019 and the Capital Markets Authority Nairobi Coffee Exchange Regulations 2020, emphasizing the need for consistent policy execution to empower farmers. He mentioned that the marketing changes have led to a 48 percent increase in Kenyan coffee prices, benefiting farmers.
The coffee bill, currently in mediation between the Senate and the National Assembly, is expected to establish a coffee board to strengthen the coffee research institute. Nancy Cheruiyot, managing trustee and CEO of the Commodities Fund, stated that they provide credit at rates below 10 percent to support smallholder farmers. Despite limited funds from the Exchequer, they are exploring external partnerships and climate fund support to enhance the value chain. The government plans to allocate Sh5 billion over the next three years to support these initiatives.
Kenya, known for its high-quality Arabica coffee, primarily exports to markets like the US and Germany, although domestic consumption is on the rise.
