Kenya extends coffee sector reforms to 2027 

KENYA – Kenya has officially extended its coffee sector reforms to 2027, delaying the full transition of the Nairobi Coffee Exchange (NCE) to farmer ownership as the country continues efforts to strengthen the industry and enhance market efficiency. 

In a gazette notice dated June 12, 2026, Cabinet Secretary for Co-operatives and MSME Development Wycliffe Oparanya extended the term of the Working Committee overseeing the reforms until June 2027.  

The committee, chaired by Kenneth Gitonga, was initially gazetted in February 2025 for a 12-month period. 

The committee is responsible for implementing the framework provided under the Capital Markets (Coffee Exchange) Regulations and the Crops (Coffee) General Regulations.  

Its mandate includes reviewing the legal ownership of the Nairobi Coffee Exchange, advising on the transfer of assets and liabilities, developing a governance structure, overseeing human resource arrangements, facilitating licensing by the Capital Markets Authority (CMA), and recommending policy and legislative changes. 

The regulations supporting the transition were enacted in 2019 and 2020 and placed the Coffee Exchange and brokers under the supervision of the CMA. 

By mid-2025, the committee reported that the Direct Settlement System had been integrated into the NCE trading platform, a key requirement for processing coffee sales proceeds.  

However, several activities remain outstanding, including converting the exchange into a limited liability company with farmers as majority shareholders, completing asset transfers and finalising the governance framework. 

Meanwhile, the Nairobi Coffee Market has recorded strong performance during the 2025/2026 coffee year. Between October 1, 2025 and May 12, 2026, the exchange auctioned 602,973 bags worth Kes 31.7 billion. 

Alliance Berries Limited led brokers after auctioning 193,031 bags valued at Kes 10.5 billion, followed by New KPCU and Kirinyaga Slopes. 

NCE Chief Executive Officer Lisper Ndung’u said the auction had continued to attract producers because of competitive returns. 

“More farmers continued trading through the auction owing to the confidence based on high performance,” she noted. 

On the buying side, 44 coffee dealers purchased 591,695 bags, with Ibero Kenya accounting for 30.28 percent of total purchases. 

Coffee value chain expert Henry Kinyua said most of Kenya’s coffee was exported through the direct sales window to Belgium, France, Germany and the United States, reflecting the country’s strong position in premium international markets. 

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