KENYA – Kenya’s Deputy President Kithure Kindiki has assured coffee farmers of increased earnings this year, citing key government interventions aimed at improving production and enhancing returns.
Speaking during a meeting with members of the National Assembly Coffee Caucus at his Karen residence, Kindiki revealed that the projected price for coffee cherries in 2025 is Kes 110 (US$0.85) per kilogram, nearly double what farmers received in 2022.
He attributed this significant increase to wide-ranging reforms implemented by the Kenya Kwanza administration, which have addressed long-standing inefficiencies and streamlined the coffee subsector.
“We have to make sure coffee farmers earn more, and coffee brings in more foreign exchange as it used to. The Kenya Kwanza manifesto requires us to increase incomes and value for our farmers and other players in the value chain,” Kindiki stated.
To stabilize earnings, the government is implementing a Guaranteed Minimum Return (GMR) of Kes 100 (US$0.77) per kilogram of cherry, ensuring farmers receive predictable and fair compensation for their produce.
Fast-tracking key coffee sector bills
The Deputy President emphasized the urgency of passing the Coffee Bill, 2023, and the Cooperatives Bill, 2024, both currently before the Senate after being approved by the National Assembly.
“The Bills must be finalized as soon as possible because they are at the center of the reforms. We encourage the Senate to process them quickly to unlock the full coffee reforms package,” he said.
These legislative measures seek to eliminate market bottlenecks, protect farmers from exploitation, and enhance governance within coffee cooperatives.
Expanding coffee farming and improving inputs
The government is prioritizing efforts to boost production by expanding coffee cultivation beyond traditional regions like Central Kenya to areas such as Rift Valley, Western, Nyanza, and Lower Eastern, which have shown potential for high yields.
It is also increasing coffee bush productivity from the current 2kg per bush to 10kg by 2027.
Moreover, it is ensuring the availability of quality seedlings and subsidized fertilizers through last-mile distribution networks to support farmers.
“Last-mile distribution of subsidized fertilizer is critical, as we have seen its impact in other sectors like sugarcane and maize, where production has risen tremendously,” Kindiki noted.
The Kenya Agricultural and Livestock Research Organisation (KALRO) recently launched a national coffee planting campaign, aiming to increase coffee seed production from 5,000 kg to 15,000 kg by the 2027/28 financial year.
Modernization of coffee processing and debt relief
To ensure farmers reap maximum benefits, the government is also focusing on waiving outstanding debts owed by coffee cooperatives and modernizing coffee factories, some of which still use equipment dating back to the 1960s.
It is also reducing cooperative charges, capping them at 20% of coffee earnings to lower processing and transport costs.
Gichugu MP Gichimu Githinji emphasized the importance of upgrading coffee processing technology, noting that outdated machinery is hampering efficiency and profits.
“Some factories still use equipment from the 1960s. Urgent modernization is needed for better processing and quality control,” he said.
Additionally, the government is rolling out measures to minimize post-harvest losses, a persistent challenge that reduces earnings for farmers.
Enhancing transparency and market access
The Kenya Kwanza administration has also introduced direct payment systems, ensuring that farmers receive payments promptly and securely via their personal bank accounts or mobile wallets. This eliminates delays and middlemen, ensuring farmers retain more of their earnings.
To further increase transparency, coffee cooperatives are now required to maintain clear records of farmers’ debts, digitize operations, including weighing scales and stock records, by 2024/2025, and insure all coffee stocks against risks like theft and damage.
Lugari MP Nabii Nabwera earlier noted that many farmers in Western Kenya are eager to diversify into coffee farming and urged the government to increase awareness of available financial support, such as the Cherry Fund.
“Most farmers turn to expensive bank loans because they are unaware of the Cherry Fund. More publicity is needed to ensure they access this support,” he said.
Strengthening global market position
The government is also working to promote Kenyan coffee in new international markets, ensuring that the country remains a top global coffee exporter.
Just last month, the country hosted a delegation of Asian buyers as part of its intensifying effort to diversify its coffee export markets beyond traditional destinations in Europe and North America.
Currently, coffee is grown in 33 counties, with leading production regions including Kiambu, Kirinyaga, Nyeri, Murang’a, Kericho, and Bungoma. The sector directly and indirectly supports 1.5 million Kenyan households.
In March 2024, Kenya’s coffee exports were valued at approximately Kes 3.8 billion (US$27.1M), underscoring the crop’s significance to the national economy.
