This archive report was first published on 7 November 2019.
Kenya's coffee industry is on the verge of a major transformation, thanks to a Sh98 billion investment from the Inter-African Coffee Organisation (IACO). The investment, which will be implemented over a 10-year period, aims to address the challenges facing the sector's growth on the continent, including Kenya.
According to IACO, the investment will be used to build a sustainable coffee supply chain, improve demand and market linkages, and implement climate change adaptation and environmentally resilient practices. The organisation has allocated $500 million (Sh51.5 billion) for building a sustainable coffee supply chain, $100 million (Sh10.3 billion) for improving demand and market linkages, and $200 million (Sh20.6 billion) for implementing climate change adaptation and environmentally resilient practices. An additional $150 million (Sh15.4 billion) will be used to promote knowledge management and dissemination.
The investment comes at a time when the sector is experiencing a myriad of challenges that have seen output among key producers, including Kenya, decline drastically in recent years. IACO Secretary General Fred Kawuma noted that the contribution of Africa's coffees to the world trade has significantly declined since the 1970s, falling from a total production of 22 million 60kg bags in 1970 to the 16 million 60kg bags produced currently, reflecting a 23 per cent decline.
Dr Kawuma further noted that the volume of exports from the continent fell from 17 million bags in 1970 to 12 million bags, representing a 28 per cent decline. Agriculture and Livestock Cabinet Secretary Mwangi Kiunjuri said coffee production systems in Africa are still inefficient and require urgent and effective interventions.
“We intend to professionalise the whole coffee value chain by working with individual producers, producer organisations or aggregators, local roasters, exporters and the regulatory bodies within the countries,” said IACO in a concept paper released during a partners’ and donors’ forum in Nairobi on Tuesday.
