Kenya to launch online trading platform for coffee, other agricultural produce 

KENYA – Kenya is set to launch its first-ever online platform for trading farmers’ produce, beginning with coffee, in a move aimed at dismantling long-standing cartels and middlemen who have exploited farmers for decades. 

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe and Cooperatives and MSMEs Development CS Wycliffe Oparanya announced that the digital platform will connect Kenyan coffee farmers directly to both local and international buyers through an online auction system. 

The initiative, they said, will bring transparency, efficiency, and fairness to the coffee trade while guaranteeing farmers receive the full value of their produce.  

Kagwe warned that the government would take firm action against cartels and individuals manipulating coffee prices and distorting the market. 

“Marketing cannot be done the same way year after year and expect different results—it’s madness,” Kagwe stated. “We have agreed that the auction must go online, allowing international buyers to participate directly. Cartels will no longer hold the market hostage. Technology will deliver transparency and better prices for our farmers.” 

The system, expected to be implemented through the Nairobi Coffee Exchange, will open Kenya’s coffee market to global competition. Kagwe said this will restore confidence in the country’s trading framework and attract more buyers to Kenyan coffee. 

He noted that the sector earned Kes 40 billion (US$309.2M) from exports last year, far below the Kes100 billion (US$773.04M) peak recorded in the 1980s, citing low productivity, mismanagement, and exploitation by brokers as key challenges. 

To address the decline, the government is implementing a revitalisation programme aimed at expanding coffee acreage, improving yields, and strengthening extension services.  

The plan includes increasing productivity per coffee tree from 3 kilograms to 30 kilograms and deploying agricultural extension officers to train and support farmers across counties. 

Oparanya added that the programme targets tripling Kenya’s coffee output from 50,000 metric tonnes to 150,000 metric tonnes within three years. He revealed that farmers in 22 counties are already engaged, and 1,176 cooperative factories are being modernised to enhance processing capacity. 

Seedling production is also being scaled up through the New Kenya Planters Cooperative Union (New KPCU) and other agencies to meet the rising demand. 

Kagwe further announced that Kenya will table proposals at the upcoming World Food Forum in Rome, advocating for Africa’s coffee markets to operate independently to improve farmer earnings and competitiveness. 

Meanwhile, Oparanya confirmed that the Direct Settlement System (DSS), operated by Cooperative Bank, is now fully functional, ensuring that 80 percent of coffee proceeds go directly to farmers. Over 200 cooperatives have already joined the system. 

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