President Ruto signs coffee bill into law, paving way for major sector reforms

President William Ruto has signed the Coffee Bill (Senate Bill No. 10 of 2023) into law, marking a significant milestone in efforts to revitalize Kenya’s coffee industry.

The Bill was co-sponsored in the Senate by James Kamau Murango and in the National Assembly by Kimani Ichung’wah.

The legislation aims to restructure the coffee sector by transferring regulatory and commercial functions from the Agriculture and Food Authority (AFA) to the Coffee Board of Kenya, which will now oversee licensing, dealer registration, policy development, industry data collection, and marketing of Kenyan coffee locally and internationally.

The Act also establishes the Coffee Research and Training Institute, responsible for scientific research, innovation, and training in the sector.

The Institute will develop climate resilient coffee varieties, conduct research on coffee diseases, promote sustainable production, and provide scientific advice to national and county governments.

All participants in the coffee value chain including growers, millers, roasters, cooperatives, estates, and nursery operators must now register with their county governments.

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Licensing responsibilities are split, with the Capital Markets Authority issuing licenses for coffee exchanges and brokers, while the Coffee Board handles licenses for warehouse operators, buyers, cupping labs, and importers.

To fund industry growth, a 2.5% Coffee Development and Marketing Levy will be applied on coffee exports and imports.

Revenue from the levy will be allocated as follows: 35% to the Coffee Research and Training Institute, 20% to the Coffee Board, 15% to marketing initiatives, and 10% to coffee-growing counties as conditional development grants.

Speaking after the enactment, cooperatives’ Principal Secretary Patrick Kilemi described the law as a major milestone  in ongoing sector reforms.

He said it will enhance transparency, strengthen regulation, and ensure farmers capture greater value from the coffee on the global market.

The Coffee Act is expected to create a more structured, transparent, and competitive coffee value chain while improving coordination between national and county governments.

By Obegi Malack

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