Agribusiness News

Simon Chelugui directs New KPCU to roll out coffee reforms as prices increase

The government is in the process of implementing coffee reforms, aimed at benefiting farmers.

Co-operatives and MSME Development Cabinet Secretary Simon Celugui directed the New Kenya Planters Co-operative Union (KPCU) to start rolling out the implementations.

What are the current coffee prices in Kenya?

This came as coffee prices increased from KSh 20 to KSh 80 per kilogramme of coffee after the government injected KSh 4 billion into the sector.

“Following the Cabinet approval on enhanced coffee advance from KSh 20 to KSh 80 per kilogram of Cherry, and subsequent allocation of additional KSh 4 billion by National Treasury to existing KSh 2 billion, I have today directed New KPCU to roll out the implementation with immediate effect.

“This ties well with the government plan to prioritize the coffee value chain. The coffee reforms are also progressing well, with short-term actions on the Nairobi Coffee Exchange (NCE), coffee bill and co-op bill already passed by Cabinet,” said Celugui.

Coffee production in Kenya

Chelugui revealed that the government’s next focus is production and marketing, aimed at improving national productivity per coffee tree, from 1.5 kilograms to 10 kilograms.

This is expected to boost national production from the current 50,500 metric tonnes to 200,000 metric tonnes per year and position Kenya among the top 10 coffee producers in the world.

According to News 9 Kenya, the NCE house increased coffee auction prices, three months after it resumed operations in August 2023.

CS Chelugui noted that the price per bag of premium coffee increased from KSh 13,500 to KSh 52,500.

“The reforms we started earlier in the year are paying off. That is a very notable increase. This increase shows that the coffee reforms are working and farmers are winning big,” he said.

He further urged coffee farmers to return to their farms, saying that coffee is money.

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