The government has earmarked Kshs 500 million in the supplementary budget to support the propagation and distribution of coffee seedlings in a major push to revitalize Kenya’s coffee sector. The initiative is expected to distribute 20 million high-yielding seedlings annually across all coffee-growing regions in a bid to increase productivity.
The program is being driven by the Coffee Research Institute (CRI) and the New Kenya Planters Cooperative Union (New KPCU). With Kenya’s coffee output significantly lower than neighboring countries 50,000 metric tons compared to Uganda’s 400,000 and Ethiopia’s 750,000 metric tons the government is targeting a tenfold increase in production. According to officials, a properly nurtured coffee bush can yield over 40 kilos, and access to quality seedlings is a critical first step in achieving this goal.
Low productivity has been partly blamed on ageing coffee bushes, which typically remain productive for only about 20 years. The government is also tackling long-standing structural issues in the sector. Ongoing reforms aim to dismantle entrenched cartels within the Nairobi Coffee Exchange and implement a clear separation in licensing requirements for millers, buyers, and brokers. These changes have begun to yield results, with farmers reportedly earning better prices for their produce.
To complement the seedling distribution initiative, the government is also streamlining the supply of subsidized fertilizer through New KPCU. Fertilizer will be sourced from the National Cereals and Produce Board and delivered directly to coffee factories. Additionally, pesticides will be distributed at a 40% subsidy to help farmers manage diseases and pests that often reduce yields.
The broader ambition is to position Kenya as a leading coffee exporter. Coffee is the second most traded commodity globally after oil, with an estimated market value of $600 billion annually. In 2023, Kenya earned Sh33 billion from coffee exports. With increased production and improved quality, the government hopes to raise this figure significantly with a long-term goal of reaching Kshs 1 trillion in coffee earnings.
Further modernization is also on the agenda. Outdated pulping machines, which contribute to post-harvest losses and lower bean quality, are set to be replaced. Alongside this, Kshs 6.8 billion has been allocated in the next budget to settle verified debts owed to coffee cooperative societies. This financial relief is expected to ease the burden on farmers and support cooperatives’ sustainability. The debt clearance is scheduled for completion by August.
On the county level, Murang’a has emerged as a model for sectoral improvements. The local administration will allocate more funds to support coffee farmers in the upcoming financial year and is planning international trade missions to the U.S. and China to open new markets for its coffee. This year, Murang’a coffee factories paid farmers an average of Kshs 115 per kilo a significant leap from previous years when prices were as low as Kshs 20. Some factories paid even more, with Wanjengi at Kshs 141 and others like Kahuhia Main, Ngwethe, Kaganda, and Mutheru paying well above Kshs 115.
Efforts to strengthen cooperative leadership through training are ongoing, although not all farmers are in agreement with every reform. Some have called for the scrapping of the Direct Settlement System, claiming it could weaken the role of cooperative societies in managing farmer payments.
With these interventions, the government is optimistic about turning around the coffee sector, enhancing farmers’ livelihoods, and making a significant contribution to the national economy.
