Naivasha: The government is planning to mobilise more investment to boost the revival of the coffee industry and increase its share in the international market to boost farmers’ income. The Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises (MSME) Development, Wycliffe Oparanya, in an interview on the sidelines of a cooperative leaders meeting in Naivasha, said the current spirit of the Kenya Kwanza government is to ensure that the coffee industry regains its past status.
According to Kenya News Agency, the Kenyan coffee industry was once a significant foreign exchange earner and played a crucial role in the country’s economy. From its initial introduction in the 1890s, coffee production grew, reaching a peak in the 1970s and 1980s. However, the industry faced challenges, including market volatility, policy changes, and environmental issues, leading to a decline in production and a shift in its importance over the years.
“The president has committed himself to making sure that the current production of 50,000 Metric Tonnes (MT) is increased to more than 150,000 MT by the year 2028-2029, which is very critical. Achieving this level of production will help in wealth creation and poverty reduction,” said Oparanya. Following implementation of reforms initiated a decade ago, together with value chain players, the CS said the country has realised high returns, especially in coffee price increases.
Currently, Oparanya explained that for some years, prices have gone up three times though production is still low. Farmers, he added, who have consistently invested in coffee are smiling all the way to the banks as current dynamics in the global market have led to an increase in prices. He noted that key segments of the global market, due to demographic changes and consumer life-changing styles, have added coffee to the list of beverages taken every time.
“China, which has not been consuming coffee, has added coffee to her beverage list, thus offering a huge market for the commodity,” the CS said, recalling that during independence, the country was in position one in Africa in terms of coffee production and equally controlled an impressive share in the global markets. But owing to various dynamics, including the effects of the introduction of structural adjustment programmes in the late 1980s and early 1990s, the local industry has decreased sharply from high production of 129,000 MT to between 40,000 and 50,000 MT.
Kenya, the CS noted, is currently controlling less than one per cent of the global market and, in Africa, is now in position five after Ethiopia, Uganda, C´te d’Ivoire, and Tanzania. The sector, once revived, Oparanya argued, will support government efforts to tackle prevailing grinding poverty, low development, and lack of interest by the youth in joining agriculture.
“The government has developed strategies to make sure the industry is revived. Topping the list of strategies is the revival of collapsed old coffee cooperative societies, mainly unions,” he said, adding that all those institutions currently struggling will be revitalised. The government, the CS confirmed, has already availed resources within the ministry to make sure that this programme is undertaken.
The government, two months ago, on 17th April 2025, introduced the Direct Settlement System (DSS) payment system for coffee farmers to streamline payments and enhance transparency. The DSS ensures proceeds from coffee sales are directly deposited into farmers’ bank accounts, eliminating delays and potential mismanagement. Two weeks ago, Francis Ngone, Chairman of the National Coffee Cooperative Union (NACCU), had written a memorandum to the Cabinet Secretary asking for a one-year extension, up to June 2026, for the implementation of the directive requiring direct payments to farmers’ individual bank accounts.
He explained that the extension will enable cooperatives to complete data cleanup, facilitate the opening of bank and SACCO accounts for all farmers, and enhance financial literacy. Ngone had said they need to review the current levy structure to ensure that it does not erode farmer income and that proceeds are transparently managed to support farmer-facing services.