By Francis Kaloi
Introduction
Coffee is a key pillar of Kenya’s economy, ranking as the third-largest agricultural export, with its premium Arabica coffee prized globally for its distinct flavour and aroma. The subsector supports about 13 per cent of households, providing employment across the supply chain. However, production has declined by 70 per cent from 130,000 metric tonnes in 1988 to 50,000 metric tonnes in 2021, signaling the need for urgent revitalization to ensure its sustainable growth[1]. Figure 1 presents a comprehensive analysis of coffee production trends in Kenya from 1963 to 2022.
Over the years, the coffee sub-sector has faced numerous challenges, including the use of outdated farming techniques, inefficiencies within the coffee cooperative system, the impacts of climate change, and limited access to financing, all of which have contributed to the sub-sector’s under-performance. These issues have not only diminished production volumes and quality but also adversely affected the livelihoods of farmers and workers dependent on coffee cultivation.
Figure 1: Trends in Kenya’s coffee production (1963/64-2021/22)
Data source: AFA, Coffee Directorate
Policy Priorities for Enhancing Coffee Production and Growth
Addressing climate change effects
Coffee farming in Kenya faces challenges such as reliance on rainfall, limited access to modern technologies, poor crop management, and soil degradation, which affect productivity and quality. To address these issues, the Government has introduced measures such as distributing high-quality coffee seedlings. In 2023, 4,913,448 seedlings were raised in various nurseries across the country. By promoting the adoption of disease-resistant and high-yielding coffee varieties, the Government aims to enhance
productivity, improve coffee quality, and ensure the sustainability of coffee in the country. With the ambitious goal of doubling coffee production to 102,000 metric tons by 2027, the initiatives presented below are expected to boost farmers’ incomes, who form the mainstay of the industry, and strengthen Kenya’s position in the global coffee market.
Supporting climate-smart agricultural practices
Climate change is significantly impacting coffee production. The effects of climate change manifest through unpredictable weather patterns, which disrupt the growth cycles of coffee plants. Climate variability has intensified pest and disease outbreaks, including coffee leaf miners and coffee berry disease, posing significant risks to crop yields and threatening sector resilience, with potential losses exceeding 80 per cent in some instances. In addition, rising temperatures and prolonged droughts have made it increasingly difficult for farmers to sustain crop production, further threatening yields. The changing climate coupled with rapid urbanization has also resulted in a reduction of land suitable for coffee cultivation, pushing production to higher altitudes where conditions may still be unfavourable. The future of the coffee industry is uncertain without effective adaptation strategies such as drought-resistant coffee varieties, agroforestry, soil conservation techniques, and water-efficient farming practices. Supporting climate-smart agricultural practices is essential to safeguarding farmers’ livelihoods and sustaining the overall economy, as coffee is a crucial cash crop.
Enhancing coffee marketing
Coffee marketing faces significant challenges that directly impact production and farmers’ access to fair prices and broader markets, particularly in the export of green unprocessed coffee. The limited value addition and product differentiation weakens the competitiveness of unprocessed coffee, especially as global markets increasingly favour specialty coffees. The complex supply chains, with multiple intermediaries, further erode farmers’ earnings, while the absence of real-time market information prevents optimal pricing. Over the past decade, unprocessed green coffee exports have consistently been about 40,000 MT, accounting for approximately 98 per cent of total coffee exports, while processed coffee exports remain low due to limited processing infrastructure, high costs, and restricted market access (Figure 2).
Figure 2: Coffee export trends by form (2018/19-2022/23)
Data source: Coffee Yearbook 2023
Reengineering the coffee cooperative system
Financial irregularities within coffee cooperatives have led to payment delays and decreased coordination, which have, in turn, undermined farmers’ trust in the cooperatives.[2] In addition, poor governance, weak regulatory oversight, low member participation, inadequate access to credit, market inefficiencies, and misaligned leadership incentives have exacerbated these challenges. These issues have diminished the cooperatives’ effectiveness in providing adequate support to their members, directly impacting production by limiting farmers’ access to necessary resources, services, and investments.[3] The establishment of the New Kenya Planters Cooperative Union (New KPCU) and the Ksh 6.7 billion cooperative debt write-off is a vital step to improving efficiency and easing financial burdens on farmers. The proposed Cooperatives Bill 2024 seeks to enhance governance in cooperatives through transparency and democratic control, while the Coffee Bill 2023 introduces minimum price regulations and limits on borrowing to ensure fair compensation and market representation. These reforms will strengthen the cooperative system to rebuild trust, improve accountability, and foster a sustainable coffee sub-sector in Kenya.
Implications for Policy
Revitalizing the coffee sector requires targeted policy interventions to address climate challenges, strengthen governance, expand financial access, and enhance value addition. Aligning strategies with emerging opportunities, such as specialty coffee and direct trade, will boost productivity, increase farmer incomes, and generate employment along the value chain. Table 1 summarizes these key developments, their status, and the policy implications for driving sustainable growth, economic resilience, and global competitiveness in the coffee sub-sector.
Table 1: Policy directions for revitalizing Kenya’s coffee sub-sector
| Key Developments | Current Status | Policy Implications for Revitalization |
| Addressing Climate Change | Unpredictable weather patterns and increased pests are reducing yields and degrading production capacity | Implement climate-smart practices such as agroforestry, develop drought-tolerant coffee varieties, and provide irrigation infrastructure to stabilize yields |
| ModernizingFarming Techniques | Traditional practices, poor crop management, and limited adoption of advanced technologies hinder productivity | Train farmers in modern practices, distribute high-yield, disease-resistant coffee varieties, and provide affordable access to advanced farming technologies and subsidized fertilizers |
| StrengtheningMarketing Strategies | Low production volumes limit the competitiveness of Kenyan coffee in global specialty markets | Link marketing to production by incentivizing value addition at the farm level, facilitating access to global specialty markets, and integrating realtime market feedback to guide production adjustments |
| Reforming Coffee Cooperatives | Inefficient cooperatives limit farmers’ access to resources needed for highyield production | Improve cooperative governance to ensure timely payments, provide essential inputs, and increase investment in infrastructure such as processing facilities to enhance production capacity |
[1] https://afa.go.ke/resources/files/7740d2cd-d941-4cd4-b326-e67cb885a3ca_afa-year-book-of-statistics-2024.pdf
[2] https://www.oagkenya.go.ke/wp-content/uploads/2024/07/COFFEE-CHERRY-ADVANCE-REVOLVING-FUND-.pdf
[3] http://www.parliament.go.ke/sites/default/files/2020-11/Kyeni%20Coffee%20Farmers%20report.pdf
