Nairobi, Kenya – Kenya is gearing up to host its first-ever online coffee auction, a move aimed at opening the Nairobi Coffee Exchange to buyers across the globe and dismantling entrenched market cartels.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe and his Cooperatives and MSMEs counterpart Wycliffe Oparanya confirmed that preparations for the digital transition are in their final stages.
“Marketing cannot be done the same way year after year and expect different results, it’s madness,” said Kagwe.
“We have agreed with CS Oparanya that the Nairobi Coffee Exchange auction must go online globally, allowing international buyers to participate directly. Cartels will no longer hold the market hostage. Technology will deliver transparency and better prices for our farmers,” he added.
The two Cabinet Secretaries emphasized that the ongoing reforms are designed to put farmers at the center of the coffee value chain. Kagwe noted that Kenya earned sh.40 billion from coffee exports last year, nearly sh.60 billion less than peak earnings in the late 1980s.
To reverse this decline, the government plans to expand coffee acreage in new regions, raise productivity per tree from 3 kilos to 30 kilos, and deploy agricultural extension officers to support farmers at the grassroots.
CS Oparanya outlined an ambitious revitalization program to triple production from 50,000MT to 150,000MT within three years. Through New KPCU, the Ministry has already sensitized farmers in 22 counties, while modernization of 1,176 cooperative factories is underway. Seedling production is also being scaled up to meet rising demand.
Looking ahead, Kagwe revealed that Kenya will present proposals at the World Food Forum in Rome next week, calling for Africa’s coffee markets to operate more independently. He said this will help boost farmer earnings and strengthen Kenya’s global competitiveness.
“We will not allow selfish interests to sabotage our coffee. The farmer is the future. This time, technology, reforms, and global partnerships must work for them,” Kagwe asserted.
Oparanya added that the reforms are anchored in the Cooperatives Bill 2024 and the Coffee Bill 2024, currently before Parliament. Once passed, the laws will tighten governance, enhance coordination between national and county governments, and strengthen farmer representation.
He further highlighted that the Co-operative Bank of Kenya’s Direct Settlement System (DSS) is now fully operational, ensuring that 80% of coffee proceeds are paid directly to farmers. So far, 200 cooperatives have joined the system despite ongoing court mediation.
The launch of the online auction is expected to mark a major shift in Kenya’s coffee sector, ushering in greater transparency, increased global participation, and stronger protection of farmers’ earnings.