Coffee farmers reap rewards from reforms and new export markets

Coffee farmers inspect dried cherries.[File, Standard]

Kenya’s coffee sector is experiencing revival as reforms in marketing, payment systems and direct market access begin to lift farmers’ earnings.

This has restored confidence and triggered renewed investment in production across key growing regions.

After years of decline marked by delayed payments, low prices, and widespread abandonment of coffee farms, growers in Nyeri, Kirinyaga, Embu, Murang’a and Kiambu are now reporting improved returns, with some cooperatives earning between Sh155 and Sh156 per kilogramme of cherries delivered to factories.

The gains come at a time when the Coffee Directorate projects national production to rise by 13.3 per cent to about 850,000 bags in the 2025/26 coffee year, up from 750,000 bags last year, signalling a gradual recovery in a sector that has struggled for decades with inefficiencies and weak pricing systems.

At its peak, Kenya produced over 128,000 tonnes of coffee annually.

Today, output has fallen to about 40,000 tonnes, driven by long-standing structural challenges, including delayed payments, theft of coffee cherries, high production costs, governance issues in some cooperatives and declining global competitiveness.

Climate change has further worsened the situation, with erratic rainfall patterns, prolonged dry spells and rising temperatures disrupting flowering cycles and reducing yields across major coffee-growing zones.

For many farmers, the crop had become unsustainable. “Coffee had become too uncertain. You could work for a whole year and still wait months to be paid,” said Nyeri farmer Geofrey Kariuki, who at one point considered uprooting his coffee trees for avocado farming, a trend that has spread across the central highlands.

The turnaround is largely anchored on reforms targeting coffee marketing and payment systems, particularly the Direct Settlement System, which channels proceeds directly to cooperative accounts controlled by farmers, reducing payment delays from months to days.

The digitalisation of the Nairobi Coffee Exchange has also improved transparency by reducing reliance on intermediaries and making pricing more visible across the value chain.

In practical terms, coffee pricing is now easier to understand at the farm level. On average, about six kilogrammes of coffee cherries produce one kilogramme of clean coffee. At current auction prices of about $7 (Sh896) per kilo, this translates to roughly Sh149 per kilo of cherry, offering farmers a clearer view of how global prices translate into farmgate earnings.

Beyond domestic reforms, international buyers are bypassing traditional auction systems to engage directly with cooperatives, reshaping how Kenya’s coffee is traded.

One of the most influential players in this shift is Dutch coffee sourcing company Trabocca, which began direct purchases from cooperatives in Nyeri and Kirinyaga in 2018.

Price volatility

The company introduced a guaranteed minimum return model, insulating farmers from global price volatility while also investing in post-harvest infrastructure.

“Kenya has some of the world’s best coffee, with a unique and distinct profile,” said Trabocca sourcing lead Matthew Harrison. “However, many farmers are not fully aware of the commercial value of what they produce.”

According to Trabocca founder Menno Simons, Kenya’s coffee potential could be elevated through stronger origin branding, comparing it to premium regions such as Champagne in France, where geography and identity strongly influence value.

“The central highlands have what it takes to build a strong origin identity. With stronger infrastructure and partnerships, farmers can be incentivised to produce higher-quality coffee and increase production,” said Simons.

Another sourcing firm, Rockbern, says the reforms have not only streamlined processes in favour of farmers but also changed how buyers interact with producers.

“Farmers now have greater control over when and to whom they sell their coffee,” said Rockbern founder Peter Muchiri.

“But it is important that they elect capable and trustworthy leaders to manage these systems effectively.” The impact of improved pricing and direct market access is already being felt across coffee-growing regions.

In Embu, Rung’eto Cooperative Chairman Samuel Karanja said direct trade has improved both returns and transparency compared to the traditional auction system.

“The prices offered through direct markets are competitive and better than what we achieved in previous years,” said Karanja.

“There is also greater clarity on milling costs and deductions that farmers previously did not understand. In Nyeri, farmers say many who had abandoned coffee are now reinvesting in their farms. “Buyers are now coming directly to source coffee from cooperatives, and that motivates farmers to invest more because they know there is money in coffee again,” said farmer Mary Maina.

In Thiriku, Wachira Mwangi said younger farmers are slowly joining the sector. “Young people are becoming interested again, and some are even leasing neglected farms because they can now see a future in coffee,” he said.