KERUGOYA, Kenya — The High Court in Kerugoya has suspended the government’s rollout of the Direct Settlement System (DSS) for paying coffee farmers, citing inadequate public participation in key coffee-growing counties.
Justice Edward Muriithi on Monday put the policy on hold until May 20, 2026, after ruling on a petition filed by farmers who argued that the DSS and the Capital Markets (Coffee Exchange) (Fees) Regulations, 2024 were introduced without proper stakeholder engagement.
The judge noted that 15 coffee-producing counties did not participate meaningfully in the public consultations, making the process unconstitutional.
“The appointment of the commercial bank was against the law, public participation was violated, and the National Assembly did not facilitate public participation at this stage,” Justice Muriithi stated.
Farmers Challenge Direct Payments
The petitioners said the DSS — which channels farmer payments directly to individual accounts or mobile wallets — risked destabilising household financial planning.
They argued that small mobile disbursements could trigger impulsive spending and undermine the ability to save for major needs such as school fees.
Farmer leaders also said the system was imposed without parliamentary oversight or direct consultations with growers, alleging that engagement was done with brokers and intermediaries instead.
Celebrations in Kerugoya
Following the ruling, coffee farmers took to the streets of Kerugoya to celebrate the court’s decision.
National Coffee Cooperative Union chair Felix Muriithi, Vice Chair Muriithi Maina, and Kirinyaga Slopes Union chair Geoffrey Munyagia led the celebrations, praising the court for listening to farmers.
Kirinyaga Central MP Gachoki Gitari welcomed the ruling, saying the lack of proper public participation had long been a concern.
Justice Muriithi directed the government to file a status update within six months detailing whether fresh public participation has been conducted or whether the DSS decision has been abandoned.
“The Capital Market Coffee Exchange Fees Regulations 2024 are suspended pending public participation for a period of six months. The matter will be mentioned again on May 20, 2026,” he ruled.
The decision marks a major pause in the government’s coffee sector reforms, coming at a time when farmers have been demanding greater transparency and involvement in policy changes affecting the sector.
