Kenya is set to revolutionize its coffee industry with the launch of the first-ever online auction, designed to open the market to international buyers and strengthen farmer incomes.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe and Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya confirmed that the Nairobi Coffee Exchange is on the verge of going digital, ending years of market manipulation by cartels.
“Marketing cannot be done the same way year after year and expect different results; it’s madness,” Kagwe said on Wednesday.
“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,” he added.
Kagwe pointed out that although coffee generated Sh40 billion last year, the sector remains far below the Sh100 billion it achieved in the late 1980s.
To reverse this, the government plans to expand coffee farming into new areas, raise productivity per tree from 3 kilos to 30 kilos, and deploy extension officers from agricultural colleges to provide farmers with practical guidance.
Oparanya said the program targets an ambitious increase in production from 50,000MT to 150,000MT within three years.
The Ministry has already sensitized farmers in 22 counties through New KPCU, while 1,176 cooperative factories are being upgraded and seedling production is being scaled up to meet growing demand.
Looking ahead, Kagwe revealed that Kenya will present proposals at the World Food Forum in Rome to encourage independent coffee markets across Africa, aimed at improving farmer earnings and enhancing 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 said.
Oparanya added that the reforms are anchored in the Cooperatives Bill 2024 and the Coffee Bill 2024, currently before Parliament.
Once enacted, the laws will close governance gaps, strengthen coordination between national and county governments, and boost farmer representation.
He further noted that the Direct Settlement System operated by Cooperative Bank is now fully functional, ensuring 80% of coffee proceeds are paid directly to farmers.
To date, 200 cooperatives have already joined the platform, even as court mediation continues.