State to license coffee cooperatives as new export agents

The government will license primary farmers’ coffee cooperative societies as coffee export agents, which is likely to ignite a new business war with established local and international companies.  

Agriculture and Food Authority (AFA) Chairman Cornelly Serem disclosed that as part of the new dawn in the coffee sub-sector, the State intends to permit primary coffee societies to market their produce directly to key segments of the international market.

“Having succeeded in licensing farmers associations as coffee brokers in the last few years, our next move is to register new agents to ship coffee overseas. We are working with county governments as well as established farmers’ coffee cooperative societies to ensure they meet all the required regulations before allowing them to export their coffee,” said Mr Serem.

“Licensing primary coffee cooperative societies will help in the  reduction of cost of doing business and enhances income to farmers.”  

Mr Serem made the remarks recently during the celebration of International Coffee Day at the Kirinyaga County Co-operative Coffee Mill at Kiaga.   

Most of Kenya’s coffee is exported by international coffee companies through their local subsidiaries.

For the last two years, the government under a coffee reform agenda has been reorganising the milling and marketing of local coffee as part of empowering local farmers.  

In the development of the coffee industry, Mr Serem said, some farmers’ coffee cooperative societies have managed to integrate their business as part of reducing costs and thus increasing income for their members.

“We have coffee societies that have processing units, mills and brokerage companies. Licensing agents to export the commodity will advance their profile both locally and internationally,” he said, adding that the government is fast-tracking sector reforms to ensure the industry is free of price distortions by cartels and unscrupulous traders.  

Kirinyaga County Co-operative Union Ltd Chairman Geoffrey Munyagia said coffee sold through the Nairobi Coffee Exchange (NCE) has increased significantly. 

The union has been selling its coffee through Kirinyaga Slopes Coffee Brokerage Company Ltd, one of the 16 coffee brokers registered by the Capital Markets Authority (CMA) to market Kenyan coffee at the auction.

Since it was established in October 2023, the company has traded most of the coffee at NCE with the clean beans fetching some of the highest prices at the auction.