Ruto unveils coffee revival plan, defends direct payment model despite court ruling
President William Ruto being taken coffee processing process. Photos/Courtesy.
By MKT Correspondents
President William Ruto yesterday launched an ambitious coffee revitalisation programme, outlining a series of reforms aimed at increasing farmers’ earnings, boosting production, and strengthening Kenya’s position in the global coffee market.
Speaking at Kianyaga Stadium, in Kirinyaga county, the President reaffirmed his administration’s commitment to transforming the coffee sector through faster payments, value addition, expanded market access, and increased domestic consumption.
However, his remarks also reignited debate over the controversial Direct Settlement System (DSS), a payment model that remains the subject of legal and political contestation.
The President insisted that coffee farmers should receive their proceeds within five days after the sale of their produce, arguing that delayed payments have historically disadvantaged growers and weakened the sector.
“Farmers should get their pay on the fifth day after sale. This will ensure that the farmer has money when they need it. It is not a favour; it is a right,” Ruto said.
The statement was interpreted by some stakeholders as a reaffirmation of the government’s support for the Direct Settlement System, under which farmers receive payments directly through mobile money and bank accounts rather than through traditional cooperative structures.
The DSS model has faced opposition from a section of coffee farmers and cooperative leaders who successfully challenged its implementation in court.
In a ruling issued by the High Court in Kerugoya, Justice Edward Mureithi suspended the mandatory implementation of the payment system after petitioners argued that it had been introduced without adequate public participation and consultation with stakeholders.
Farmers opposed to the model contend that routing payments directly to mobile phones may encourage impulsive spending, particularly among smallholder farmers. Others argue that cooperative societies have traditionally served as financial intermediaries, helping farmers access credit facilities from banks based on expected coffee earnings.
Following the court ruling, the State Department for Cooperatives indicated that the government would suspend compulsory implementation of the system and engage stakeholders before making further decisions.
However, remarks made by the President during yesterday’s event have prompted fresh criticism from some farmers who accuse the government of disregarding the court’s directive.
Njoroge Mtetezi, a coffee farmer and sector advocate, said many growers remain concerned about the future of the payment system.
“The President appears to be pushing ahead with a model that farmers challenged in court. We believe the concerns raised by farmers should be addressed first because the current mode of payment is not favouring many small-scale growers,” he said.
Ambitious production targets
The President unveiled a broad strategy aimed at restoring Kenya’s coffee industry, which has experienced declining production over the past several decades due to shrinking acreage, rising production costs, land ksubdivision, and changing market dynamics.
Ruto said the government is targeting an increase in annual coffee production from the current levels to 150,000 metric tonnes by 2028.
He further announced plans to improve productivity at the farm level by increasing yields per coffee tree.
According to the President, the government wants to raise average production from approximately two kilograms per stem to as much as 20 kilograms through improved farming practices, better seedlings, extension services, and modern processing technologies.
A key pillar of the reforms is increasing the share of coffee revenues that goes directly to farmers.
The President said farmers should retain up to 80 percent of earnings from coffee sales, while millers, marketers, cooperative societies, and other service providers share the remaining 20 percent.
“If it is the farmer who does the work, then the farmer must benefit the most. We want a system where the farmer receives 80 percent and the rest of the value chain shares the remaining 20 percent,” he said.
The proposal aligns with reforms introduced by the government over the past two years aimed at reducing operational costs across the coffee value chain and increasing transparency in marketing and payment systems.
KSh4 billion set aside for sector support
The Head of State also announced that the government has allocated KSh2 billion to support coffee debt management and another KSh2 billion for the production and distribution of certified coffee seedlings.
The debt issue has remained a major concern in coffee-growing regions, with many cooperative societies burdened by historical loans that have affected operations and farmers’ earnings.
However, the President stopped short of confirming whether all outstanding debts owed by coffee cooperatives in Kirinyaga and other counties would be fully settled under the programme.
In addition, the government plans to invest KSh2 billion in modern eco-pulpers to improve coffee processing efficiency and enhance the quality of Kenyan coffee destined for export markets.
Call for greater local consumption
President Ruto challenged Kenyans to embrace coffee consumption as part of efforts to build a stronger domestic market.
While Kenya is internationally renowned for producing premium-quality coffee, local consumption remains relatively low compared to major coffee-producing countries such as Brazil and Ethiopia.
The President noted that domestic consumption currently accounts for only a small fraction of total production and called for deliberate efforts to increase uptake.
“If we want our coffee to be respected globally, we must also consume it locally. Other countries consume a significant portion of what they produce. We need to increase our consumption and create our own coffee culture,” he said.
Industry stakeholders have long argued that expanding local consumption would reduce reliance on volatile international markets and create a more stable source of demand for farmers.
The President also highlighted ongoing trade negotiations and agreements aimed at expanding market access for Kenyan agricultural products.
He said Kenya has secured or is pursuing arrangements with countries including Belgium, India, Italy, China, and South Korea to ease market access barriers for exports such as coffee, tea, and nuts.
According to the President, reduced tariffs and improved trade relations will enable Kenyan products to compete more effectively in international markets.
Ruto further defended the government’s policy of promoting local processing and value addition, citing the ban on the export of raw in-shell macadamia nuts as an example of efforts to retain more value within the country.
“We cannot continue exporting our products in raw form while other countries create jobs and wealth from them. Value addition must happen here in Kenya so that our people benefit from the full value of what they produce,” he said.
Mixed reactions
While many farmers welcomed government commitments to improve earnings and reduce payment delays, others expressed reservations over unresolved issues surrounding the DSS payment system and cooperative governance reforms.
Coffee sector analysts note that the success of the revitalisation programme will ultimately depend on implementation, stakeholder consensus, access to affordable farm inputs, and the government’s ability to balance reforms with the interests of smallholder farmers who account for the majority of Kenya’s coffee production.
For now, the launch signals the government’s determination to revive one of Kenya’s most valuable cash crops, even as debate continues over the best path to achieving that goal.
The president was accompanied by several government and private sector stakeholders led by Deputy President Kithure Kindiki and Cabinet Secretaries Mutahi Kagwe and Wycliffe Oparanya. Several Governors and lawmakers from coffee growing areas were also present.
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