KENYA – The Kenyan government has announced a significant plan in its coffee sector reforms to license farmers’ coffee cooperative societies as agents to export their coffee directly to international markets.  

The move is aimed at empowering local farmers and reducing the costs associated with coffee marketing and exportation. 

Cornelly Serem, Chairman of the Agriculture and Food Authority (AFA) revealed that this initiative is part of broader efforts to reform the coffee subsector.  

Under the plan, farmers’ cooperative societies will now have the ability to market and ship their coffee internationally, cutting out intermediaries and allowing for greater income retention by farmers. 

“Having succeeded in licensing farmers’ associations as coffee brokers in recent years, our next move is to register new agents who will be able to export coffee overseas,” said Serem.  

He added that the national and county governments are working together with established coffee societies to ensure they meet the necessary regulatory requirements to obtain export licenses. 

The new licensing system is expected to reduce the cost of doing business for coffee farmers by allowing them to sell directly to international buyers, bypassing some of the costs typically incurred through middlemen.  

This shift is also anticipated to enhance farmers’ incomes, providing greater financial returns for their produce. 

Currently, most of Kenya’s coffee is exported by international coffee companies that have established subsidiaries in the country.  

By enabling local cooperatives to export coffee themselves, the government aims to increase farmers’ bargaining power and ensure they receive fair compensation for their products. 

Over the past two years, the government has been working under its coffee reform agenda to reorganize the milling and marketing of Kenyan coffee as part of its commitment to supporting local farmers.  

Serem highlighted the success of some cooperative societies that have integrated processing units, mills, and brokerage companies into their operations, allowing them to significantly reduce costs and increase farmers’ earnings. 

Licensing cooperatives to export coffee is the next step in boosting the profile of these societies, both locally and internationally, Serem said.  

The move comes as part of a broader effort by the government to eliminate cartels and unscrupulous traders that have historically distorted the coffee industry in Kenya. 

In August 2024, the Nairobi Coffee Exchange (NCE) introduced new trading regulations to curb malpractices on the trading floor.  

The reforms, based on the Crops Regulations of 2019 and Capital Markets Regulations of 2020, ensure a more transparent trading process, including the timely payment of growers and penalties for buyers or roasters who default on payments. 

By licensing farmers’ cooperatives as export agents and tightening trading regulations, the government hopes to ensure a fairer, more lucrative coffee market for Kenya’s coffee farmers. 

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