Deputy President Rigathi Gachagua has reported significant progress in Kenya’s coffee sub-sector reforms, leading to better prices for farmers and enhanced compliance with international regulations. Speaking at the official opening of the Nairobi International Trade Fair 2024 at Jamhuri Park, the DP emphasized the strides made in the agricultural sector, particularly in coffee production, since the government began its reform agenda last year.
Higher Coffee Prices Following Reforms
The Deputy President highlighted the impact of reforms at the Nairobi Coffee Exchange, where prices have surged since the overhaul of the system. “The average price per 50kg bag of coffee has risen to 237 US Dollars from 188 US Dollars before the reforms,” Gachagua noted. The reforms, spearheaded by Gachagua following President William Ruto’s directive, have seen 47 auctions conducted since the reopening of the Nairobi Coffee Exchange in August 2023.
In a sector historically marred by inefficiencies, Gachagua hailed the introduction of 15 Farmer Co-operative Unions Brokers (Grower Brokers), allowing farmers to sell their coffee directly, compared to just one broker before the reforms. This direct access to markets has resulted in higher earnings for coffee growers across the country.
Boost to Coffee Cherry Advance Fund
Furthering the government’s commitment to empower coffee farmers, the Deputy President announced that the Coffee Cherry Revolving Fund, managed by the New Kenya Planters Cooperative Union (KPCU), will receive an additional 3 billion shillings in the 2024/25 financial year. This fund provides farmers with access to much-needed capital to invest in their farms and improve production.
Push for Compliance with European Union Regulations
In addition to coffee sector reforms, Kenya is working towards meeting the European Union Deforestation Regulations (EUDR) by the December 30, 2024 deadline. The regulations, which require agricultural exports to comply with strict deforestation standards, could impact Kenya’s access to the EU market if unmet.
Gachagua reassured farmers that the government is taking all necessary steps to ensure compliance. “My office is coordinating a high-level inter-ministerial committee to ensure that we meet the EUDR deadline,” he said.
Support for Farmers in Other Sub-sectors
Beyond coffee, Gachagua reported that farmers in the dairy and maize sub-sectors are also benefiting from recent reforms. “The guaranteed minimum price per litre of milk has increased by 35%, from 37 shillings in 2022 to 50 shillings per litre in 2024, under New KCC,” the DP said. This move, he added, aims to stabilize the dairy sector and support farmers as they deal with fluctuating market conditions.
In maize production, higher yields have driven down the cost of a 2kg packet of maize flour, from 169 shillings at the beginning of 2024 to 130 shillings, bringing relief to Kenyan households.
Nationwide Agro-dealer Registration
To ensure efficient distribution of farm inputs, Gachagua revealed that the government has registered 15,895 agro-dealers and 7,115 stockists in 45 counties, excluding Nairobi and Mombasa. This geo-referencing system will allow for close monitoring of input distribution and prevent the sale of substandard products that undermine agricultural productivity.
