Kenya Ministry of Co-operatives has announced new reforms geared towards reviving Kenya’s coffee sector and doubling production within three years.

Co-operatives, Micro, Small and Medium Enterprises (MSME’s) Development Cabinet Secretary Wycliffe Oparanya said that coffee production in Kenya which once peaked at 150,000 metric tonnes annually in the 1980s and 1990s, had dropped sharply due to market inefficiencies, weak co-operative governance and reduced farm productivity.

In a speech read on his behalf by Co-operatives Principal Secretary Patrick Kilemi during the International Coffee Day celebrations hosted by New Kenya Planters Co-operative Union (KPCU), Oparanya said the current output was projected at between 60,000 and 70,000 metric tonnes for 2025, but the government was determined to reverse the decline.

“Kenya’s recovery will depend on raising yields per bush and expanding acreage,” he said.

“While the average bush produces less than two kilogrammes, some farmers applying proper agronomy achieve up to 50 kilogrammes per bush. If we can raise yields to 20 kilogrammes per bush and expand acreage, output could rise tenfold, allowing us to surpass Uganda and even challenge Ethiopia as Africa’s top producer,” the cabinet secretary said.

Oparanya said a key milestone in the reforms was the Direct Settlement System (DSS), which directly linked producers and buyers at the Nairobi Coffee Exchange.

“The system has brought transparency and ensured farmers receive at least 80 per cent of their coffee’s value. It has also enabled co-operative societies to recover loans, reducing the risk of indebtedness,” he said.

Oparanya said the Coffee Cherry Advance Revolving Fund, which had disbursed more than Ksh9.7 billion to farmers in three years, was a clear success.

“Repayments are nearly complete. This proves that farmers are reliable partners when treated fairly and given structured financing,” he said.

The cabinet secretary explained that the Coffee Bill 2024 and the Co-operative Bill 2024 are game changers in the sector as they promise to modernize governance, enhance accountability, and empower millions of Kenyans who rely on co-operatives for their livelihoods.

“The legislation will entrench governance, transparency and accountability in co-operatives while addressing weaknesses in existing oversight bodies,” he said.

New KPCU Chair Henry Kinyua who also serves as an Advisor on Crops and Value Chains in the President’s Economic Transformation Secretariat, said the reforms had restored optimism in the sector and positioned Kenyan farmers to compete more strongly in regional and global markets.

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

Kinyua underlined the importance of local consumption noting, “Kenya consumes less than five percent of its coffee compared to Ethiopia’s over 50 per cent. Developing a vibrant local coffee culture will cushion us from global price shocks.”

Oparanya echoed the call, warning that it was unsustainable for Kenya to be known for top-quality coffee while its own people were not drinking it.

“We must make coffee part of our daily lives, especially among young people. Coffee shops, universities and workplaces should be hubs of consumption. Already, platforms like TikTok and Instagram are making coffee a lifestyle product for the youth,” the cabinet secretary said.

• A Tell Media / KNA report / By Lucy Mwende and Mary Ndanu