By James Murimi - Reporter
Kenya, 22 June 2026 - Kenyan coffee farmers will begin receiving payment for their produce within five days of delivery under sweeping reforms unveiled by President William Ruto, in a move expected to transform one of the country's most important agricultural sectors and boost incomes for hundreds of thousands of households.
The reforms, announced during the launch of the National Coffee Revival Through Cooperative Societies Programme in Kianyaga, Kirinyaga County, seek to end decades of delayed payments, exploitation by middlemen and inefficiencies that have contributed to declining production and farmer disillusionment.
At the centre of the reforms is a Direct Settlement System designed to ensure farmers are paid almost immediately after delivering their coffee, ending a long-standing practice where growers often waited months, and sometimes entire seasons, before receiving their earnings.
"Farmers will no longer be waiting for weeks, months or entire seasons to be paid. Timely payment is not a favour to the farmer; it is the farmer's right," President Ruto said.
The reforms form part of the Government's wider strategy to revive coffee farming, a sector that directly supports more than 700,000 smallholder farmers and contributes significantly to Kenya's export earnings.
In a major shift aimed at improving returns, the President announced that at least 80 per cent of proceeds from every coffee sale will go directly to farmers, with service providers sharing the remaining 20 per cent.
President Ruto said the Government has streamlined the coffee value chain and curtailed the influence of brokers who for years exploited farmers through multiple licences and opaque transactions.
He said the reforms are already bearing fruit, with coffee prices rising from about Sh50 per kilogramme to Sh158 over the past two years.
The Government is now targeting returns of up to Sh250 per kilogramme, a move expected to encourage more farmers to invest in the crop and expand acreage under cultivation.
To support the revival programme, the Government has rolled out subsidised fertiliser, quality seedlings, extension services, irrigation support and modern farming equipment.
President Ruto said Sh18 billion has been allocated to the fertiliser subsidy programme, lowering the price of fertiliser from Sh7,500 to Sh2,500 per bag and significantly reducing production costs.
The Government has also allocated Sh2 billion to clear outstanding debts owed to coffee farmers, Sh1 billion to support cooperative coffee factories through county governments and another Sh1 billion for the distribution of quality coffee seedlings.
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The ambitious plan seeks to triple Kenya's annual coffee production from the current 50,000 metric tonnes to 150,000 metric tonnes by 2028.
The Government also aims to increase average yields from about two kilogrammes per tree to six kilogrammes through improved farming practices and better access to inputs.
At the same time, land under coffee cultivation is expected to expand from 280,000 hectares to 380,000 hectares within the next two years as improved returns attract more farmers to the crop.
Traditional coffee-growing counties including Kirinyaga, Nyeri, Murang'a, Kiambu, Embu and Meru are set to benefit from rehabilitation of ageing coffee trees and modernisation of processing factories, while emerging coffee-growing regions will receive support to increase production.
Deputy President Kithure Kindiki said coffee farming has expanded beyond its traditional strongholds, noting that 35 of Kenya's 47 counties are now producing the crop.
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said the reforms had restored confidence in the sector and attracted new farmers, particularly in Western Kenya where coffee cultivation is rapidly gaining ground.
Beyond production, the Government is seeking to increase earnings from the crop by promoting local processing, packaging and branding rather than exporting raw coffee beans.
"We are moving from the export of raw coffee to local processing, packaging and branding so that more value is retained in Kenya, creating jobs, growing the economy and ensuring our farmers earn more from the coffee they produce," President Ruto said.
He challenged local and international investors to partner with Kenya in building globally recognised coffee brands and urged public institutions, hotels, restaurants and businesses to prioritise serving locally produced coffee.
The reforms are expected to play a critical role in revitalising the agricultural sector, strengthening rural economies and increasing Kenya's foreign exchange earnings as the Government seeks to restore coffee's status as one of the country's leading cash crops.