Coffee farmers from across the country have threatened to withdraw from the National Coffee Exchange (NCE) and form a parallel entity to market their produce, citing frustrations over the controversial Direct Settlement System (DSS).
Leaders of coffee cooperative societies from ten counties Bomet, Kericho, Baringo, Nyeri, Kisii, Kirinyaga, Makueni, West Pokot, Machakos, and Bungoma say the DSS has been imposed on farmers without their input. They claim the government, in collaboration with the NCE, is forcing growers into the system, which they argue only benefits brokers and financial institutions at the expense of producers.
Speaking in Kirinyaga after attending a court session where they are challenging the legality of the DSS, the officials accused banks and other financial institutions of being used as “conveyor belts” for implementing a system that strips farmers of control over their earnings. The case, however, was adjourned to September 3, 2025.
National Coffee Cooperative Union (NACCU) chairman Felix Mwai said farmers are now preparing to register a new umbrella organisation that will handle their sales independently of the NCE. “We cannot continue doing business with institutions that are bent on oppressing us. Our focus is to ensure farmers earn directly from their hard work,” he said.
His sentiments were echoed by NACCU secretary-general Bahama Muriithi, who urged President William Ruto to directly engage coffee growers rather than brokers. “We are the ones with coffee farms, not the brokers. Any law affecting farmers should come from consultations with us, not imposed directives,” he said.
The DSS, introduced as part of the government’s reforms to streamline coffee payments, was intended to ensure transparency and reduce exploitation by middlemen. However, many farmers argue it has instead complicated transactions and exposed them to unnecessary delays.
The growing discontent threatens to disrupt the country’s coffee sector, one of Kenya’s most valuable export industries. If farmers follow through with their threat to boycott the NCE, the stability of coffee marketing could face significant upheaval in the coming months.
