Nairobi: The National Government is stepping up efforts to attract private investment into Kenya’s coffee value chain as it seeks to triple national production from the current 50,000 metric tonnes to 150,000 metric tonnes by 2028.
According to Kenya News Agency, the investment drive, spearheaded by the Ministry of Cooperatives and MSMEs Development in partnership with the Food and Agriculture Organization (FAO) and New Kenya Planters Cooperative Union (New KPCU), will culminate in an international investment forum in Rome, Italy, in October. During this event, Kenya will showcase investment opportunities to global financiers and agribusiness investors.
Speaking during the 2026 Hand-in-Hand (HIH) Local Private Sector Investment Forum in Nairobi, the Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, stated that Kenya’s premium coffee enjoys strong global demand, making increased production the country’s immediate priority rather than searching for new markets. He noted the growing demand in China, India, and the United States presents significant opportunities for Kenyan farmers.
Oparanya explained that the government has introduced wide-ranging reforms to revive the sector after a decline in production in the 1980s. Measures include reducing the number of intermediaries to improve farmer earnings, expanding coffee cultivation into new regions, and boosting productivity in traditional growing areas through extension services and agronomic support. The government aims to increase average yields from about two kilograms per coffee bush to at least five kilograms.
Financial reforms to strengthen coffee cooperatives have also been highlighted, including settling long-standing debts and improving governance. An audit identified genuine cooperative debts at Sh6.8 billion, down from an initial estimate of Sh11 billion, with the government already clearing about Sh2 billion owed to state institutions. An additional Sh2 billion has been allocated in the current financial year to settle loans owed to commercial banks, with the remaining balance expected to be cleared through a supplementary budget.
To reduce dependence on expensive commercial loans, the government has established an Sh8 billion advance revolving fund, enabling farmers to access credit at three percent interest.
FAO Representative in Kenya, Farayi Zimudzi, stated that the UN agency has been working with the government to identify priority investment opportunities capable of accelerating coffee sector growth and attracting private capital. FAO has undertaken a preliminary investment analysis that will form the basis of Kenya’s investment pitches during the Rome forum, where more than 20 countries are expected to vie for global financing.
FAO is collaborating with the United Nations Industrial Development Organization (UNIDO) to boost production while UNIDO supports industrial development and value addition along the coffee value chain. Proposed investment areas include increasing coffee production, strengthening value addition, integrating digital marketing systems, promoting youth and women’s participation, and enhancing sustainable farming systems.
FAO Sustainable Agri-food Systems Programme Lead Tito Arunga proposed a USD73 million public-private investment package to increase coffee production, improve quality, and create new income opportunities across Kenya’s coffee value chain. The package includes about USD40 million in public financing, with the remaining USD33 million expected from private sector investors.
Priority investments include rehabilitating and modernising about 100 wet coffee mills and establishing a dry mill in Kakamega to serve the expanding coffee-growing region in western Kenya. The proposal also suggests integrating apiculture with coffee farming by establishing honey-processing hubs at coffee factories, a model that has shown success in countries like Colombia.
FAO advocates investment in a digital marketing platform to enhance transparency and improve access to market information. Arunga added that the organisation is promoting value addition through the utilisation of coffee waste, noting that the country generates nearly 200,000 metric tonnes of coffee pulp annually, which could be processed into products such as cascara tea and other industrial raw materials.
According to Arunga, the proposed investments align with the government’s coffee sector reforms and are intended to run concurrently with ongoing efforts to expand production and improve competitiveness. The government believes that combining ongoing sector reforms with increased private investment will restore Kenya’s position among Africa’s leading coffee producers while improving incomes for thousands of coffee farmers across the country.
