Government Unveils Bold Coffee Sector Reforms to Double Production

Key Highlights

• Kenya’s coffee output has dropped from 150,000 metric tons in the 1980s/90s to 60,000–70,000 metric tons today.
• Government targets to double production within three years through agronomy, acreage expansion, and co-operative reforms.
• The Direct Settlement System (DSS) ensures farmers receive at least 80% of coffee value.
• The Coffee Cherry Advance Revolving Fund has disbursed Sh9.7 billion, with repayments nearly complete.
• Coffee Bill 2024 and Co-operative Bill 2024 set to entrench transparency and accountability.
• Sector leaders push for value addition, branded exports, and increased local consumption.

The government has announced a fresh wave of reforms aimed at reviving Kenya’s coffee sector and doubling production within the next three years.

Co-operatives and MSME Development Cabinet Secretary Wycliffe Oparanya, in a speech delivered on his behalf by Principal Secretary Patrick Kilemi during International Coffee Day celebrations, acknowledged the sector’s decline from its historic highs in the 1980s and 1990s.

“Kenya’s coffee production once peaked at 150,000 metric tons annually, but inefficiencies, poor governance, and reduced farm productivity have dragged output down to between 60,000 and 70,000 metric tons in 2025. We are determined to reverse this,” Oparanya said.

Unlocking Productivity

The CS noted that while the average coffee bush yields less than two kilograms, some farmers practicing proper agronomy achieve up to 50 kilograms per bush.

“If we can raise yields to 20 kilograms per bush and expand acreage, output could rise tenfold, positioning Kenya to surpass Uganda and even challenge Ethiopia as Africa’s top producer,” he said.

Key Reform Milestones

A cornerstone of the reforms is the Direct Settlement System (DSS) at the Nairobi Coffee Exchange, which links producers directly with buyers.

“The system has brought transparency and ensured farmers receive at least 80 percent of their coffee’s value. It has also enabled co-operatives to recover loans, reducing indebtedness,” Oparanya noted.

Another milestone is the Coffee Cherry Advance Revolving Fund, which has injected over Sh9.7 billion to farmers in three years. “Repayments are nearly complete, proving that farmers are reliable partners when treated fairly and given structured financing,” he added.

New Laws and Governance

Oparanya underscored the importance of the Coffee Bill 2024 and Co-operative Bill 2024, describing them as game changers.

“The legislation will entrench governance, transparency, and accountability in co-operatives while addressing weaknesses in oversight. This will empower millions of Kenyans who rely on co-operatives for their livelihoods,” he said.

Looking Ahead: Value Addition and Local Consumption

Henry Kinyua, New KPCU Chairperson and Advisor in the President’s Economic Transformation Secretariat, said reforms had restored optimism and competitiveness.

“We must now move toward value addition and direct consumer sales abroad. Exporting branded products will capture more earnings for farmers,” he said.

He also emphasized boosting domestic coffee consumption, noting Kenya consumes less than 5% of its coffee compared to Ethiopia’s 50%.

Oparanya echoed this, warning it was unsustainable for Kenya to be known for premium coffee while its people barely drank it.

“Coffee must be part of our daily lives, especially for young people. Coffee shops, universities, and workplaces should be hubs of consumption. Platforms like TikTok and Instagram are already making coffee a lifestyle product for the youth,” the CS said.