President Uhuru Kenyatta highlighted recent coffee sector reforms that have significantly boosted farmer earnings, citing a 50% increase in payments compared to previous years. The reforms, initiated through a 2016 presidential task force, streamlined the industry's complex structure to empower coffee growers.
The 2016 task force developed a new regulatory framework that allowed six coffee brokers to obtain Capital Markets Authority (CMA) approval for direct market access. This shift enabled farmers to bypass traditional intermediaries, with Kipkelion District Cooperatives Union serving as a key example. In March, the union directly exported 134.4 tons of coffee to South Korea, generating Ksh.103 million and paying farmers Sh116 per kilo.
Kenyatta emphasized that the reforms restored farmers' property rights, stating, "We have eliminated barriers created by an overly complex coffee industry structure that previously prevented effective participation in the value chain." He noted that some cooperatives now pay up to Ksh.125 per kg of cherry, a 50% rise from the Ksh.85 peak in 2021.
To further support production, the 2019 administration established an Sh3 billion coffee cherry revolving fund. This initiative, alongside programs like the Ksh.1 billion input subsidy scheme, provides farmers with subsidized fertilizers and affordable credit, enhancing their market competitiveness.
