Kenya court suspends DSS coffee payment system over public participation gaps 

KENYA – The Kerugoya High Court has halted the government’s plan to implement the Direct Settlement System (DSS) for paying coffee farmers, suspending its rollout until May 20, 2026.  

The ruling followed a petition challenging the Capital Market (Coffee Exchange) (Fees) Regulations, 2024, with the court finding that the process lacked adequate public participation in 15 coffee-growing counties. 

Justice Edward Muriithi noted that the government’s appointment of a commercial bank to administer payments failed to meet legal requirements, adding that the National Assembly did not ensure public participation at the necessary stage.  

The case had been filed by coffee farmers contesting the DSS payment model, which they argued was introduced without engaging key industry stakeholders. 

Farmers raised concerns that direct payments of small amounts through mobile money could encourage unplanned spending, thereby reducing the ability to save for major expenses such as school fees.  

They further argued that the policy was imposed without proper consultation with actual producers, claiming that the process benefited brokers instead of farmers. 

Following the ruling, coffee farmers from the region, including National Coffee Cooperative Union chairperson Felix Muriithi, vice-chairperson Muriithi Maina, and Kirinyaga Slopes Union chairperson Geoffrey Munyagia, held demonstrations in Kerugoya to express support for the judiciary’s decision.  

Kirinyaga Central MP Gachoki Gitari also welcomed the judgment, citing the lack of adequate public involvement. 

Justice Muriithi directed the government to update the court within six months on whether meaningful public participation had been conducted or if the contested decision had been withdrawn. He further suspended the Capital Market (Coffee Exchange) (Fees) Regulations, 2024, for the same six-month period. The matter will be mentioned again on May 20, 2026, for further directions. 

Coffee fetches record price 

The ruling comes as Kenya records significant gains in international coffee prices. Coffee exports to Kuwait achieved the highest global sale price in the three months to June 2025, reaching KES 349,728 (US$2,706.88) per 50-kilogram bag.  

Data from the Agriculture & Food Authority (AFA) shows this equates to approximately KES 6,970 (US$54) per kilogram of green coffee, with farmers earning about KES 160 per kilogram of cherry. 

During the same period, average prices were notably lower in other markets, including the United States at US$456 per 50-kilogram bag, Switzerland at US$339, and the United Kingdom at US$438. 

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