President William Ruto signs coffee bill 2023 into law to reform, revive Kenya’s coffee industry
New Coffee Act introduces regulatory reforms, a development levy and institutional restructuring to boost transparency, research and global competitiveness in Kenya’s coffee sector.
KENYA – William Ruto has signed the Coffee Bill (Senate Bill No. 10 of 2023) into law, marking a major step in efforts to revitalise Kenya’s coffee industry.
The legislation introduces sweeping reforms aimed at restructuring the sector and improving its competitiveness in global markets.
At the centre of the new law is the creation of the Coffee Board of Kenya, which will take over both regulatory and commercial oversight functions previously handled by the Agriculture and Food Authority.
The board will act as the central regulator and promoter of the industry, responsible for processing permits and licences, registering coffee dealers and coordinating sector-wide policies, strategies and funding models.
It will also oversee the collection and management of industry data, conduct market intelligence and surveys, and promote Kenyan coffee both locally and internationally.
“The board will also be responsible for collecting and maintaining industry data, conducting market intelligence and surveys, and promoting Kenyan coffee in both domestic and international markets,” the government said.
A key component of the law is the strengthening of branding and traceability through support for the Kenya Coffee Mark of Origin, alongside the promotion of regional coffee appellations.
The legislation also seeks to enhance research and innovation in the sector. Functions currently undertaken by the Coffee Research Institute under the Kenya Agricultural and Livestock Research Organisation will be transferred to a newly established Coffee Research and Training Institute.
The government stated that the institute will focus on advancing agronomic research, farmer training and technology adoption.
The Coffee Board will work alongside institutions such as the Kenya Bureau of Standards and the Capital Markets Authority to develop industry standards, facilitate technology transfer to counties and build capacity among growers, cooperatives and traders.
In addition, the board will regulate coffee marketing and trading, coordinate Kenya’s participation in international coffee forums and promote digital marketing strategies to expand global demand.
To support industry growth, the law introduces a 2.5% Coffee Development and Marketing Levy on coffee exports and imports.
According to the government, 35% of the levy will be allocated to the Coffee Research and Training Institute, 20% to the Coffee Board, 15% to marketing initiatives and 10% to coffee-growing counties as conditional development grants.
Speaking after the enactment, Patrick Kilemi said the law represents a major milestone in ongoing reforms.
“It will enhance transparency, strengthen regulation, and ensure farmers capture greater value from the coffee on the global market,” he said.
The Coffee Act is expected to create a more structured, transparent and competitive coffee value chain while improving coordination between national and county governments.
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