Kenya unveils coffee sector reforms to boost farmer income, curb debt 

KENYA – Kenya’s Cabinet Secretary for Cooperatives, Micro, Small and Medium Enterprises (MSMEs), Wycliffe Ambetsa Oparanya, has announced a multi-billion-shilling intervention to revitalise the country’s coffee industry.  

Speaking to farmers in Tharaka Nithi County, Oparanya outlined new measures aimed at boosting production, modernising marketing systems, and eliminating debt burdens. 

A key element of the plan is the government’s commitment to provide free coffee seedlings to smallholder farmers this year. The initiative is expected to increase coffee yields and rejuvenate interest in the crop among local communities.  

“We are here to revive coffee farming. This year, the government will provide free seedlings as part of our revival plan,” said Oparanya. 

The Cabinet Secretary also addressed the issue of debt, a persistent problem in the sector. He assured farmers that the government would support them in settling outstanding debts, but only if those obligations were transparent and legitimate.  

“If the debt is genuine and clear, the government will pay. But if it is shrouded in corruption or cartel dealings, it won’t be covered,” he said. 

To enhance access to finance, Oparanya urged farmers to take advantage of the KES 8 billion (US$61.8M) Cherry Fund. The fund allows farmers to access up to 80% of the value of their coffee cherry, offering critical support during the post-harvest period.

Farmers can receive the funds through banks of their choice, with the CS dismissing claims that mobile payment systems like M-Pesa were mismanaging payments. 

In terms of market reforms, the government is supporting direct sales for large-scale farmers and encouraging smallholders to join cooperatives for better access to resources and international markets.  

Oparanya also highlighted ongoing collaboration with the Nairobi Coffee Exchange and the Capital Markets Authority to introduce shareholding and trading mechanisms for farmers. 

To ensure loan transparency, all cooperative loans must now be approved by both the Commission of Cooperatives and the County Director of Cooperatives.  

The CS also revealed that Kenya Planters Co-operative Union (KPCU) has been directed to secure KES 2 billion (US$15.4M) to digitise coffee processing operations. 

Farmers were also encouraged to register with the Social Health Authority (SHA) to enhance their productivity through improved healthcare access. Oparanya concluded by urging Kenyans to increase local coffee consumption, currently estimated at just five percent. 

Meanwhile, the Nairobi Coffee Exchange resumed auctions after a two-month break, recording earnings of KES 376 million (US$2.9M) from the sale of 7,887 bags—slightly below the KES 377.64 million (US$2.9M) raised from 6,650 bags before the recess in May. 

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