The National Coffee Cooperative Union (NCCU) is urging the government to extend the deadline for implementing the policy requiring all coffee sales proceeds to be paid directly into farmers’ individual bank accounts.
The union is requesting a one-year extension to June 2026.
NCCU Chairperson Francis Ngone stated that the extension would allow cooperatives sufficient time to complete data clean-up, assist farmers in opening bank and SACCO accounts, and strengthen financial literacy among coffee growers.
The government introduced the Direct Settlement System (DSS) in August 2023 to improve transparency in payments to coffee farmers.
However, nearly two years later, many farmers—particularly those in rural and marginalized areas—still lack access to banking services or active accounts.
Ngone has submitted a memorandum to Co-operatives Cabinet Secretary Wycliffe Oparanya, formally requesting the extension.
“This extension will enable cooperatives to complete data clean-up, facilitate the opening of bank and SACCO accounts for all farmers, and enhance financial literacy,” Ngone said in a statement.
He also emphasized the need to safeguard the DSS platform from political interference or manipulation by vested interests.
Additionally, the NCCU is advocating for a review of the current coffee levy structure to ensure it does not diminish farmers’ earnings.
The union wants greater transparency in how the proceeds are managed and a shift toward more farmer-centered services.
At present, coffee marketing levies are distributed among coffee brokers, the Capital Markets Authority, the Nairobi Coffee Exchange, and the DSS.
