Coffee prices are projected to increase to Sh110 per kilogramme this year, Deputy President Prof Kithure Kindiki said, reiterating the government’s commitment to intensify the implementation of new reforms.

He stated that coffee farmers will earn more this year owing to key interventions by the government that have improved production and increased returns.

“We have to make sure coffee farmers earn more, and coffee brings more foreign exchange as it used to. The Kenya Kwanza manifesto requires us to increase incomes and value for our farmers and other players in the value chain.

We are faithfully implementing the manifesto to ensure the Guaranteed Minimum Returns of Sh100 per kg of cherry,” said Kindiki.

Wide-ranging reforms

The Deputy President said the estimated projection is at Sh110 per kg of cherry this year which is almost double what farmers received when the Kenya Kwanza administration took over in 2022. 

The rise, Kindiki stated, has been occasioned by wide-ranging reforms and interventions instituted by the government that has helped in streamlining the sub-sector and elimination of perennial bottlenecks frustrating farmers.

The DP hosted MPs from coffee regions for consultations on consolidating the reforms and sharing ideas on what more to be done to improve earnings.

He called for fast-tracking of the Coffee Bill, 2023 and Cooperatives Bill, 2024 which are before the Senate after the National Assembly approved them saying they are at the centre of the success of the efforts to further better the coffee value chain. “The Bills must be finalised as soon as possible because they are at the centre of the reforms. We encourage the Senate to process the Bills that will unlock the coffee reforms package,” Kindiki advised. 

Coffee industry compared to a decade ago is currently enjoying benefits following aggressive interventions touching on production, processing and marketing.

For instance, farmers are receiving their proceeds through the direct settlement system (DSS) being hosted by Co-operative Bank of Kenya. The system is able to deduct all the expenses and share due earnings to the farmers.  Unlike before farmers were taking long or years before receiving their hard-earned sweat.

The government is further implementing a Sh6.8 billion cherry revolving  fund where farmers are borrowing at 3 per cent. The fund is administered New Kenya Coffee Planters Union (NKPCU).

The DP also said the government, through various respective agencies and in collaboration with the county governments, will ensure availability of quality seedlings and appropriate fertilizers at the nearest place and on time.

“Last-mile distribution of subsidised fertiliser for coffee farmers is critical because we have seen the impact the fertiliser has had in other sectors like sugarcane, maize where production has shot up tremendously,” he said.