Kenya is preparing for a significant transformation in its coffee industry, with a new initiative aimed at giving farmers more control over the export of their products.
In a bold reform spearheaded by the Agriculture and Food Authority (AFA), farmers’ coffee cooperative societies are set to be licensed as agents to directly export their coffee, disrupting the traditional dominance of local and international coffee marketers.
Cornelly Serem, Chairman of the AFA, announced that this shift is part of broader reforms in the coffee subsector aimed at empowering farmers and enhancing their profitability.
“After successfully licensing farmers’ associations as coffee brokers in recent years, our next step is to register agents who will ship coffee overseas,” said Serem.
The move will allow cooperatives to bypass middlemen, reducing operational costs and allowing farmers to capture more value from their produce.
Serem also highlighted that both national and county governments are working with these cooperatives to ensure they meet regulatory requirements for export licenses.
The introduction of licensing for cooperatives is not just about expanding access to international markets but also about improving farmers’ income.
By cutting out layers of intermediaries and streamlining processes, the initiative is expected to boost profits for farmers across the country.
Several cooperatives have already begun integrating their businesses. Many have established their own processing units and mills to lower operational costs, significantly improving their bottom line.
One such example is the Kirinyaga County Co-operative Union, which, through its brokerage company, Kirinyaga Slopes Coffee Brokerage, has successfully sold coffee for its members while reducing milling costs by 5%.
Kirinyaga Slopes, one of 16 licensed brokers by the Capital Markets Authority (CMA), has played a key role in Kenya’s coffee market.
Since its establishment last year, the brokerage has sold coffee worth $35.7 million (Ksh 4.6 billion) by mid-August, accounting for 21.43% of Kenya’s total coffee sales at the Nairobi Coffee Exchange (NCE).
Its success underscores the potential of cooperative-run coffee businesses in achieving higher profitability for farmers.
The Kenyan government is accelerating reforms to protect the coffee industry from exploitation by cartels and unscrupulous traders.
Serem emphasized the government’s commitment to cleaning up the sector and promoting transparency. These reforms are expected to empower local farmers by reducing the influence of middlemen who have historically dominated the coffee market.
