By MoALD Team
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe together with his Cooperatives and MSMEs Development counterpart Wycliffe Oparanya have confirmed that preparations are in the final stages for Kenya’s first online coffee auction, set to open the Nairobi Coffee Exchange to buyers worldwide.
“Marketing can not be done the same way year after year and expect different results. It’s madness,” said Kagwe.
“We 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.”
The two CSs stressed that reforms must put farmers at the center. Kagwe noted that Kenya earned KSh40 billion from coffee last year, but this was nearly KSh 60 billion less than peak earnings in the late 1980s. He outlined plans to expand acreage in new regions, increase productivity per tree from 3Kgs to 30Kgs, and deploy extension officers from agricultural colleges to support farmers.
CS Oparanya said the revitalization program aims to triple production from 50,000MT to 150,000MT within three years. Through New KPCU PLC, the Ministry has already sensitized farmers in 22 counties, with modernization of 1,176 cooperative factories underway and seedling production being scaled up to meet growing demand.
Looking ahead, Kagwe revealed that Kenya will table proposals at the World Food Forum in Romey next week, pushing for Africa’s coffee markets to operate independently in order to boost farmer earnings and strengthen Kenya’s global competitiveness.
“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,” he emphasized.
Oparanya added that the reforms are anchored in the Cooperatives Bill 2024 and the Coffee Bill 2024, currently before Parliament. Once enacted, they will address governance loopholes, improve coordination between the national and county governments, and strengthen farmer representation.
He further revealed that the Direct Settlement System (DSS) operated by Cooperative Bank is now fully operational, ensuring that 80% of coffee proceeds go directly to farmers.200 cooperatives are already on board, despite ongoing court mediation.
The two spoke during a breakfast meeting on coordination of the Kenya Coffee Sector initiatives and upscaling investments that was held at Sarova Stanley Hotel in Nairobi.
