Kerugoya High Court has suspended the government’s plan to implement the Direct Settlement System (DSS) for payments to coffee farmers, citing lack of public participation in 15 coffee-growing counties. The ruling was delivered by Judge Edward Muriithi on a case challenging the Capital Market (Coffee Exchange) (Fees) Regulations 2024.
The lawsuit was filed by coffee farmers who argued that the DSS, which enables direct mobile payments in small amounts, could lead to impulsive spending and affect their ability to save for major expenses such as school fees. Farmers also contended that the policy was introduced without proper stakeholder engagement or parliamentary approval, bypassing actual farmers in favor of brokers.
“The appointment of the commercial bank was against the law, public participation was violated, and the National Assembly did not facilitate public participation at this stage,” the court noted.
Following the verdict, coffee farmers from the region, led by leaders from the National Coffee Cooperative Union, Kirinyaga Slopes Union, and others, celebrated in Kerugoya, expressing confidence in the judiciary. Kirinyaga Central MP Gachoki Gitari also commended the court, emphasizing the lack of proper public consultation before the government’s decision.
Judge Muriithi directed the government to either conduct public participation or reconsider its decision within six months. The court confirmed that the Capital Market Coffee Exchange Fees Regulations 2024 will remain suspended pending public consultation. The case will be revisited on May 20, 2026, for further directions.
This ruling is seen as a significant victory for coffee farmers, who have long advocated for inclusive policies that protect their interests and ensure transparency in the coffee value chain. Stakeholders are now watching closely as the government navigates the next steps toward implementing a fair payment system.
