NAIROBI, Kenya- Kenya is gearing up for a major shakeup in its coffee industry, and it’s all about giving farmers more control.
In a bold move that could disrupt the status quo, Kenya’s Agriculture and Food Authority (AFA) plans to license farmers’ coffee cooperative societies as agents to export their coffee directly.
This initiative is expected to stir up fresh competition with long-established local and international coffee marketers.
Cornelly Serem, Chairman of the AFA, explained that this shift is part of the ongoing reforms in the coffee subsector, designed to empower farmers and improve profitability.
“After successfully licensing farmers’ associations as coffee brokers in recent years, our next step is to register agents who will ship coffee overseas,” said Serem.
He emphasized that both national and county governments are working with these cooperatives to ensure they meet all the regulatory requirements for export licenses.
Licensing coffee cooperatives as export agents is not just about taking control of international markets—it’s about cutting costs and boosting income for farmers. By reducing the layers of middlemen and streamlining operations, farmers stand to gain more from their hard work.
Serem pointed out that many cooperative societies have already started integrating their businesses, such as setting up their own processing units and mills, which has helped reduce costs significantly.
One standout example is the Kirinyaga County Co-operative Union, which has made significant strides in selling farmers’ coffee through its brokerage company, Kirinyaga Slopes Coffee Brokerage.
By establishing their own mill, the union has slashed milling costs by 5pc, a move that has improved overall profitability for farmers in the region.
The Kenyan government is also fast-tracking its broader coffee reform agenda to protect the industry from exploitation by cartels and unscrupulous traders.
Serem reaffirmed the government’s commitment to ensuring that these reforms will empower local farmers by cleaning up the industry and enhancing transparency.
With more cooperatives handling their own exports, the hope is to reduce the influence of middlemen who have historically dominated the market.
Kirinyaga Slopes, one of 16 coffee brokers licensed by the Capital Markets Authority (CMA), has been a key player in this movement.
Since its establishment last year, the brokerage has handled a significant portion of the coffee sold through the Nairobi Coffee Exchange (NCE), fetching some of the highest prices at auction.
By mid-August, Kirinyaga Slopes had already sold coffee worth $35.7 million (Ksh 4.6 billion), accounting for 21.43pc of Kenya’s total coffee sales at auction.
As Kenya continues to reform its coffee sector, the future looks promising for farmers. By gaining more control over their product and reducing the cost of doing business, cooperatives are paving the way for a new era of profitability and sustainability.
This shift is not only a win for farmers but could also make Kenyan coffee even more competitive on the global stage.
