Coffee farmers across Kenya will begin receiving payments through a centralised system managed by the Cooperative Bank from July 2025.
According to the Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya, the new payment structure is part of the initiative designed
to eliminate corruption in the coffee sector.
"Coffee farmers have long been exploited by dishonest individuals within cooperative societies," Oparanya said.
“The initiative is a critical step toward safeguarding farmers.”
The new payment method is replacing the previous payment structure, where payments were handled by cooperative societies.
Farmers will receive 80 per cent of the proceeds directly, while 20 per cent will be retained by the cooperative societies.
“Should need arise for deductions above 20 per cent, co-operatives will be required to write to the ministry detailing reasons why,” he warned.
The reforms are expected to lead to improved earnings for farmers. It also aims to enhance transparency and accountability within the coffee sector, addressing past issues of corruption and delayed payments.
Payment is expected to be done within five days after their produce is sold at the Nairobi Coffee Exchange, with the aim of stemming delayed payments that saw farmers depend on loans.
Cooperative societies will also still play a role in ensuring farmers have access to inputs like fertilizer and chemicals.
On April 24, 2025, Oparanya, while addressing coffee farmers in Ndumberi, Kiambu, assured them that the system will facilitate smooth payments and ensure farmers are paid on time.
Additionally, Murang’a Coffee Farmers’ Co-operative Union chairman Francis Ngone urged the government to use the co-operative movement to increase coffee production.
He noted that the county has 144 factories that form 52 coffee co-operative societies.
“Cooperative societies have a mandate to ensure farmers’ access to subsidised inputs like fertilisers and chemicals. Bypassing the cooperatives when it comes to payments is like leaving farmers to operate on their own,” he said.
