This archive report was first published on 9 December 2019.
Kenya's coffee industry is facing a crisis as the country's annual production has drastically declined to about 40,000 tonnes from 130,000 tonnes per annum, according to Sasini Group, a key stakeholder in the field.
Group Chairman Naushad Merali attributed the reduced output to the dwindling acreage of land under the crop in the region due to farmers' apathy. He urged the national and county governments to support coffee production through grants and subsidies to farmers.
Mr Merali noted that some neighboring countries, such as Rwanda, are now producing at the same level as Kenya, albeit under very low acreage. He called on farmers to increase production, saying prices are likely to improve next year.
Efforts by the government to reform the sector have failed, with newly proposed laws not helping to win over disfranchised farmers. The Crops (Coffee) (General) Regulations of 2019 have been faulted by some farmers, who claim they would further entrench the cartels that have overseen the decline of the industry.
A recent study by financial services firm ICEA Lion indicated that farmers are increasingly getting low returns from cash crops. The study attributed the drastic decline to rising costs of production, including a 68% increase in fertiliser costs and a 165% increase in crop chemicals between 2013 and 2018.
Published on December 9, 2019
