Kenya to mobilise US$193.7M to boost coffee sector infrastructure, production 

KENYA – The government has announced a major initiative to revitalise the coffee sector by mobilising KES 25 billion (US$193.7M) in private capital for infrastructure modernisation and production expansion.  

The investment, set to be unveiled under a new Coffee Investment Framework, is part of broader reforms targeting a threefold increase in coffee output over the next three years. 

This move supplements other government allocations including KES 500 million committed in the 2024–25 budget, KES 2 billion (US$15.5M) proposed for the Coffee Cherry Revolving Fund in 2025–26, and another KES 2 billion earmarked for coffee debt waivers. 

Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said the injection of funds will be critical to meeting the government’s production target of over 150,000 metric tonnes, up from the current 51,000 metric tonnes. 

The Coffee Investment Framework forms one of 11 strategic pillars the ministry is spearheading to transform the sector. Other focus areas include recovering idle land for cultivation, introducing high-yield and climate-resilient coffee varieties, and increasing productivity from two to 10 kilograms per tree. 

The ministry also plans to scale up the Coffee Cherry Advance Fund to beyond KES 10 billion to provide better input support. Enhancements to digital advisory services and investments in Coffee Training Centres are expected to address the limited farmer support, currently accessed by only 12% of growers. 

Reforms will extend to strengthening cooperative societies to promote professionalism, transparency, and accountability. This is intended to improve traceability and post-harvest handling, critical for maintaining quality standards in the global market. 

The government also aims to increase Kenya’s share of global coffee revenues through value addition. At present, the country earns only 5% to 8% of the value of each cup sold internationally. Through local processing and packaging, the ministry seeks to retain more value within the country. 

To improve international trade, Kenya plans to broaden market access through expanded direct trade links and the pursuit of niche certifications, particularly targeting the Gulf and Chinese markets. 

On the policy front, the government is accelerating institutional reforms by fast-tracking the Coffee and Cooperative Bills and introducing a Reform Dashboard to monitor implementation progress. 

Commissioner for Co-operatives Development David Obonyo, speaking on behalf of CS Oparanya, highlighted key sectoral challenges such as declining yields from aging trees—many over 30 years old—as well as increased climate risks and market volatility. 

To address these, the government has distributed 780,000 seedlings to date, with targets set at five million by the end of 2025 and 20 million in 2026. Sensitisation campaigns are ongoing across 33 counties with coffee-growing potential. 

Kenya’s coffee industry supports over 800,000 smallholder farmers and directly benefits more than five million people. 

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