Governor Anne Waiguru chairing a meeting attended by players in the coffee industry on July 21, 2025/ALICE WAITHERACoffee farmers and players in the industry have been urged
to consolidate their views on the proposed coffee Direct Sales and Settlement
regulations that have been contested by farmers in Kirinyaga County.
Governor Anne Waiguru has underscored the need to consider the grievances raised by the farmers in order to establish a system that is agreeable to the various stakeholders.
Waiguru spoke during a consultative meeting with representatives from Capital Markets Authority, Agriculture and Food Association, Nairobi Coffee Exchange and Farmers’ Cooperative Societies and Unions on Monday.
Coffee farmers have opposed parts of the regulations, especially the new coffee Direct Sales and Settlement proposal that seeks to pay them directly soon after coffee is sold, bypassing their co-operative societies, and will be overseen by the Capital Markets Authority.
The Direct Settlement System was introduced by the government in August 2023 and is run through the cooperative bank, ensuring farmers get their payments promptly from buyers through their co-operative societies.
But farmers have said paying them directly risks causing the collapse of the strong co-operative movement that has held the sector together for decades, employing thousands and providing them with inputs, advance payment and loans.
“After thorough deliberations on the proposed process, its justification and the farmers’ opposition, we have agreed that each group would consult further before reconvening to resolve the outstanding issues,” the governor said.
The government has hailed the system as one that will safeguard the farmers’ interests, increase transparency, minimise financial mismanagement and reduce delays in payments.
Co-operatives Cabinet Secretary Wycliffe Oparanya recently maintained that 80 per cent of farmers’ proceeds would be directly channelled to their banks while 20 per cent is channelled towards their co-operatives.
Oparanya who was in Meru two weeks ago, insisted that the measure is being implemented for farmers’ benefit, vowing to have it seen through.
"I know some people don’t want reforms. This is the reason we are battling to win seven court cases. We will bring reforms so farmers can get justice. I want to see farmers benefiting from their coffee production.”
Oparanya said for a long time, farmers have been receiving meager returns after toiling in their farms, remaining poor despite their efforts.
The CS said the reforms will shield farmers from exploitative coffee co-operative societies’ managers who misappropriate their money for their benefit.
“I met a woman who told me she has been farming coffee for the 50 years she had been married but could not afford to educate her children. Compare her to the chairperson of her co-operative who is probably rich with a big house, a decent car and a comfortable life through her proceeds," he said.
Waiguru asked the stakeholders to come up with consolidated proposals that can be presented to the government for consideration to enable the formulation of regulations that are acceptable across the board.
With an annual production of over 40,000 tonnes, Kirinyaga is the leading producer of coffee in the country with the produce milled and marketed through the cooperative system that incorporates about 120,000 smallholder farmers from across the county’s coffee growing zones.
The farmers then market the coffee through Kirinyaga Slopes Coffee Brokerage Company that is owned by Kirinyaga Coffee Co-operative Union and attained its brokerage status in 2023.
The county administration is currently constructing a modern warehouse for the union which encompasses 15 coffee co-operative societies that operate 75 factories.
The warehouse being put up at Kimicha will have the capacity to process up to 40,000 bags of parchment coffee.
Waiguru reaffirmed her commitment to empowering coffee farmers to increase earnings from production, coffee addition, processing and marketing with the aim of uplifting their living standards.
Last year, the county sold about 8.9 million kilogrammes of cherry, raking in Sh5 billion for farmers who were paid as high as Sh144 per kilogram of cherry.
