The government has unveiled new reforms in the coffee sector, including the disbursement of Ksh 9.7 billion to revitalize production and enhance farmer incomes.
Co-operatives and MSMEs Development Cabinet Secretary (CS) Wycliffe Oparanya, through Co-operatives Principal Secretary Patrick Kilemi, revealed that Kenya’s coffee production has fallen sharply to less than 70,000 metric tons, compared to over 150,000 tons in the 1980s and 1990s.
Oparanya attributed the decline to market inefficiencies, weak governance in co-operatives, and reduced farm productivity. He noted that while the average coffee bush yields under two kilograms, some farmers applying proper agronomy practices achieve up to 50 kilograms per bush.
“If we can raise yields to 20 kilograms per bush and expand acreage, output could rise tenfold, allowing Kenya to surpass Uganda and even challenge Ethiopia as Africa’s top producer,” Oparanya said during International Coffee Day celebrations.
Key Reforms Driving the Sector
The CS highlighted several measures that have already transformed farmer earnings. The Direct Settlement System (DSS), which links producers directly with buyers at the Nairobi Coffee Exchange, has increased transparency and ensured farmers receive at least 80 percent of their coffee’s value. It has also allowed co-operatives to recover loans, reducing indebtedness.
In addition, the Coffee Cherry Advance Revolving Fund, a government-backed loan facility for smallholder farmers, has been hailed as a success. With repayment rates almost complete, Oparanya praised farmers as “reliable partners when treated fairly and given structured financing.”
Legislative Support
The upcoming Coffee Bill 2024 and Co-operative Bill 2024 are expected to further enhance accountability in the sector. These laws aim to empower farmers, strengthen co-operative societies, and create a transparent framework for sustainable growth.
With the government’s renewed commitment, Kenya’s coffee industry could be on the path to reclaiming its position as one of Africa’s leading producers while securing better returns for its farmers.
