Coffee Reforms to Push Production to 200,000 Tonnes by 2029

Cabinet Secretary for the Ministry of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development, Wycliffe Ambetsa Oparanya, has affirmed the government’s commitment to revamp coffee cooperatives across the country and increase production to 200,000 tonnes.

Speaking in Chuka during a sensitization meeting on coffee revival, CS Oparanya said the government has injected funds into the revival effort, noting that 13 such forums have already been conducted across the 33 coffee-growing counties to assess the implementation of recommendations made by the 2019 coffee reforms taskforce.

“Kenya was once ranked among the top producers of coffee globally. In 1988, the country produced 200,000 tonnes; today, we are down to 50,000 tonnes and ranked fifth. The taskforce formed in 2019 found poor management, weak governance, and lack of government investment among the leading challenges. We are here to follow up on progress,” he said.

CS Oparanya added that the Coffee Research Institute, under the Ministry of Agriculture, has provided 3 million seedlings. An additional 2 million seedlings will be sourced from Ethiopia and Uganda to help reach the 2029 production target. He said the seedlings will be distributed for free later this year.

The CS further announced that the Nairobi Coffee Exchange has been granted a license by the Capital Markets Authority to facilitate coffee trade. During this transitional phase, the government will hold a 1% stake in the exchange through the National Treasury.

“Through the Nairobi Coffee Exchange, farmers will receive direct payments through their preferred accounts. We will announce when cooperatives can begin purchasing shares. For now, an interim transitional committee chaired by Kenneth Gitonga is in place,” he said.

To increase accountability, CS Oparanya stated that cooperatives seeking loans must now get approval from the Commission on Cooperatives and the respective County Directors of Cooperatives to prevent misuse of funds. He also announced plans to introduce term limits for cooperative leaders, noting that some have held office for more than 30 years.

He revealed that all debts owed by cooperatives will be waived.

“The President committed to writing off KSh 6.8 billion owed by cooperatives. The Ministry has received KSh 2 billion so far, which will go towards settling debts for smaller cooperatives. The remainder will be disbursed in the next installment,” he said.

While acknowledging Uganda as a leading exporter and Ethiopia as Africa’s top coffee producer, CS Oparanya observed that 50% of Ethiopia’s coffee is consumed locally, compared to only 5% in Kenya. He announced plans to increase local consumption to 20%.

Principal Secretary for the State Department for Cooperatives, Patrick Kilemi, said the government will audit and verify cooperative leadership structures to guarantee fair returns for farmers.

New Kenya Planters Cooperative Union (New KPCU) Managing Director, Timothy Mirugi, said the government is working with the National Cereals and Produce Board (NCPB) to ensure timely delivery of fertilizer to farmers through coffee societies.

Other dignitaries present included Tharaka Nithi Deputy Governor Wilson Nyaga Muisrael, New KPCU Chairperson Daniel Chemno, and County Commissioner David Gitonga.