The government is in the final stages of launching Kenya’s
first-ever global online coffee auction, a move aimed at dismantling entrenched
cartels, opening the Nairobi Coffee Exchange to international buyers, and
securing better prices for farmers.
Agriculture and Livestock Development Cabinet Secretary Mutahi
Kagwe and his Cooperatives and MSMEs counterpart Wycliffe Oparanya said
preparations for the digital platform are nearly complete, marking a major
milestone in the country’s ongoing coffee reforms.
“Marketing cannot be done the same way year after year and
expect different results — it’s madness,” Kagwe said.
“We have agreed that the auction must go online, allowing
international buyers to participate directly. Cartels will no longer hold the
market hostage. Technology will deliver transparency and better prices for our
farmers.”
The two Cabinet Secretaries emphasised that the reforms are
designed to put farmers at the heart of the value chain.
Kagwe noted that although Kenya earned Sh40 billion from
coffee last year, this figure was nearly Sh60 billion less than the peak
earnings recorded in the late 1980s.
He outlined plans to expand coffee acreage into new regions,
raise productivity per tree from three kilos to 30 kilos, and deploy
agricultural extension officers from training institutions to work directly
with farmers.
CS Oparanya stated that the revitalization plan aims to triple coffee production from 50,000 metric tonnes to 150,000 metric
tonnes within three years.
“Through New KPCU, the Ministry has already sensitized
farmers in 22 counties. Modernization of 1,176 cooperative factories is
ongoing, and seedling production is being scaled up to meet rising demand,” he
stated.
Looking ahead, Kagwe revealed that Kenya will present
proposals at the upcoming World Food Forum in Rome, urging African coffee
markets to operate independently to boost farmer incomes and enhance
competitiveness.
“We will not allow selfish interests to sabotage our
coffee,” Kagwe asserted.
“The farmer is the future. This time, technology, reforms,
and global partnerships must work for them.”
Oparanya added that the reform agenda is anchored in the Cooperatives
Bill 2024 and the Coffee Bill 2024, both currently before Parliament.
Once enacted, the laws will seal governance loopholes,
improve coordination between the national and county governments, and
strengthen farmer representation.
He further confirmed that the Direct Settlement System (DSS)
managed by the Cooperative Bank is now fully operational, ensuring that 80% of
coffee proceeds go directly to farmers.
“Over 200
cooperatives are already on board despite ongoing court mediation,” Oparanya
said.
The new online auction is expected to go live later this
year, signaling a digital shift that could redefine Kenya’s coffee industry and
restore its global prestige.
