The government has reaffirmed its commitment to revitalising the coffee sector through ongoing cooperative reforms aimed at improving governance, transparency, efficiency and farmer earnings.
Speaking during the East Africa Coffee Markets and Conference (EACMC) 2026 Breakfast Meeting in Nairobi, Principal Secretary for the State Department for Cooperatives Patrick Kilemi said the reforms are designed to strengthen the coffee value chain and enhance the livelihoods of farmers.
Kilemi said the government is implementing a range of measures focused on improving governance in cooperatives, promoting digitisation, supporting value addition and fostering strategic partnerships that will increase efficiency and boost farmer incomes.
“The government is committed to revitalizing the coffee sector through ongoing cooperative reforms aimed at enhancing governance, transparency, digitization, value addition, and strategic partnerships that improve efficiency and increase farmer incomes,” Kilemi said.
He noted that cooperatives remain at the centre of Kenya’s coffee value chain and will continue to receive government support to improve service delivery and market access for farmers.
“Cooperatives remain central to the coffee value chain, and we will continue supporting initiatives that strengthen their capacity to deliver better services to farmers, improve market linkages, and embrace innovation. We also recognize the importance of regional collaboration, youth and women inclusion, and sustainable production practices in positioning East African coffee as a competitive global brand,” he added.
Among the key reforms is the implementation of the Direct Settlement System (DSS), which enables coffee farmers to receive proceeds directly through their bank accounts or mobile money wallets, eliminating intermediaries and enhancing transparency.
The government has also introduced regulations requiring the separation of farmers’ funds from cooperative operational accounts to prevent misuse and ensure accountability. In addition, cooperatives seeking to borrow funds must first obtain approval from members through Annual General Meetings.
The the government has undertaken a Sh6.7 billion debt write-off for coffee cooperatives to ease financial burdens and improve operations within the sector.
Other interventions include the strengthening of the New Kenya Planters Cooperative Union (New KPCU) to enhance milling and marketing services, as well as the establishment of the Coffee Cherry Advance Revolving Fund to provide affordable financing to smallholder coffee farmers.
Discussions at the conference focused on strengthening market access, improving quality assurance, enhancing compliance with international standards and promoting sustainable growth across the coffee value chain.
The East Africa Coffee Markets and Conference is a regional trade platform that brings together coffee farmers, cooperatives, exporters, buyers, roasters and industry stakeholders to explore market opportunities and strengthen trade relationships within the coffee sector.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
