KIRINYAGA, Kenya – Coffee cooperative societies from 10 counties have threatened to withdraw from the National Coffee Exchange (NCE) and establish a parallel entity to sell their produce, accusing the government of forcing farmers into the controversial Direct Settlement System (DSS).
The societies — drawn from Bomet, Kericho, Baringo, Nyeri, Kisii, Kirinyaga, Makueni, West Pokot, Machakos and Bungoma — say the exchange is colluding with the government to impose the DSS, which they argue undermines farmers’ earnings.
National Coffee Cooperative Union (NACCU) chairman Felix Mwai said they are now moving to register a new organisation to take charge of coffee sales outside the state-backed exchange.
“We will not continue trading under a system designed to oppress farmers. From now, we will register our own organisation and sell our coffee through it,” Mwai said in Kirinyaga.
Banks Accused of Enforcing DSS
The cooperatives also accused financial institutions of acting as “conveyor belts” in implementing the DSS, claiming the system sidelines farmers in favour of brokers and state interests.
NACCU secretary-general Bahama Muriithi criticised President William Ruto for consulting brokers instead of farmers in coffee sector reforms.
“The President must stop engaging people who don’t own a single coffee tree. He should sit with real farmers before making laws that oppress us,” he said.
Legal Battle
The cooperatives are already in court challenging the DSS rollout. A case filed against the government was due for hearing in Kirinyaga but was adjourned to September 3, 2025.
The looming standoff marks the latest pushback against the government’s reform drive in the multibillion-shilling coffee sector, with farmers accusing state agencies of introducing systems that reduce their bargaining power and delay payments.
