KENYA – Kenyan coffee farmers are preparing for the re-establishment of the Coffee Board of Kenya (CBK), following President William Ruto’s confirmation of the regulator’s return.
The revival of CBK is part of the proposed Coffee Bill 2023, which mandates the board with the registration and licensing of key players in the coffee value chain, including management agents, buyers, and auctioneers.
Currently, coffee in Kenya is marketed and sold through direct exports or the Nairobi Coffee Exchange. The reintroduction of CBK aims to streamline the industry by providing a centralized regulatory framework.
However, this move has sparked concerns among farmers about the potential financial burden.
Joseph Kamande, a coffee movement leader from Murang’a County, voiced his concerns, suggesting that the government should have allocated resources to the Coffee Research Foundation (CRF) instead
“CBK is a regulator, and its presence will be painful to Kenya’s coffee farmers on taxation as it issues licenses. We have the Capital Markets Authority (CMA) and Nairobi Coffee Exchange (NCE) regulating the sector,” Kamande said.
The decision to reinstate CBK follows a coffee conference in Meru last year, presided over by Deputy President Rigathi Gachagua, where stakeholders resolved to re-establish the board to oversee the industry at a national level.
In addition to reviving CBK, President Ruto announced plans to waive Ksh6 billion in debt as part of a broader scheme to revitalize coffee farming in Kenya.
He stated that the Cabinet would approve the debt write-off in an upcoming meeting, aiming to encourage farmers and boost the struggling sector.
“In the next Cabinet meeting, we will approve a write-off of Sh6 billion to our farmers so that we can reduce debts on coffee farming,” Ruto said.
This debt relief initiative is expected to inject new energy into the sector, benefit over 600,000 farmers, and expand cultivation acreage.
Furthermore, the President promised to establish a Ksh2 billion (US$15.31M) fund to support cherry farmers, providing financial cushioning while they wait for coffee auctions.
This move aims to ease the immediate financial pressures on farmers, enhancing their revenues and sustainability.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
