Kenya is gearing up for a major milestone in its coffee sector as preparations near completion for the country’s first online coffee auction, a move aimed at opening the Nairobi Coffee Exchange (NCE) to global buyers and dismantling long-standing market cartels.
Cabinet Secretary for agriculture and livestock Mutahi Kagwe, and his counterpart from the Ministry of Cooperatives and MSMEs Development, CS Wycliffe A. Oparanya confirmed that the auction platform will go live soon, marking a transformative shift in how Kenyan coffee is marketed and sold.
“Marketing cannot be done the same way year after year and expect different results ,it’s madness,” said CS Kagwe.
Kagwe said they have agreed that the auction must go online, allowing international buyers to participate directly.
“Cartels will no longer hold the market hostage. Technology will deliver transparency and better prices for our farmers.” He said.
The online system is part of wider reforms being spearheaded by the two ministries to revive Kenya’s once-thriving coffee industry. At its peak in the late 1980s, the sector earned over Ksh 100 billion annually. Last year, it generated only Ksh 40 billion, a decline both CSs termed unacceptable.
CS Kagwe announced plans to expand coffee acreage into new regions, increase productivity per tree from 3kg to 30kg, and Deploy agricultural extension officers to support farmers on the ground.
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Meanwhile, CS Oparanya said the revitalization program under the Ministry of Cooperatives and MSMEs Development aims to triple coffee production from the current 50,000 metric tonnes (MT) to 150,000MT within the next three years.
Through New KPCU PLC, the Ministry has already sensitized farmers in 22 counties, while modernization efforts are ongoing in 1,176 cooperative coffee factories across the country. The Ministry is also ramping up seedling production to meet growing demand from farmers eager to re-enter or scale up coffee farming.
“We will not allow selfish interests to sabotage our coffee. The farmer is the future. This time, technology, reforms, and global partnerships must work for them,” Kagwe stressed.
Looking ahead, Kagwe revealed that Kenya will present key proposals at the World Food Forum in Rome next week, advocating for independent African coffee markets. The goal is to enhance farmer earnings and cement Kenya’s position as a leading global coffee producer.
The sweeping reforms are anchored in the Cooperatives Bill 2024 and the Coffee Bill 2024, both of which are currently before Parliament.
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According to CS Oparanya, the proposed legislation seeks to close governance loopholes, strengthen coordination between national and county governments, and improve farmer representation within cooperative structures.
Oparanya also highlighted the success of the Direct Settlement System (DSS) operated by Cooperative Bank, which is now fully operational. The system ensures 80% of coffee proceeds go directly to farmers, minimizing exploitation and delays. So far, 200 cooperatives have been on boarded, even as legal mediation on sector governance continues.
The government’s multi-pronged approach combining digitization, legal reform, and grassroots engagement is being closely watched by stakeholders, with many hopeful that it will restore Kenya’s coffee sector to its former glory.
By Obegi Malack
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