Kenya Unveils Coffee Shake-Up, Promises Farmers Pay in Five Days
June 23 - 2026
Coffee Geography Magazine
Kenyan coffee farmers will begin receiving payment for their produce within five days of delivery under sweeping reforms unveiled by President William Ruto, in a move expected to transform one of the country’s most important agricultural sectors and boost incomes for hundreds of thousands of households.
The reforms, announced during the launch of the National Coffee Revival Through Cooperative Societies Programme in Kianyaga, Kirinyaga County, seek to end decades of delayed payments, exploitation by middlemen and inefficiencies that have contributed to declining production and farmer disillusionment.
At the center of the reforms is a Direct Settlement System designed to ensure farmers are paid almost immediately after delivering their coffee, ending a long-standing practice where growers often waited months, and sometimes entire seasons, before receiving their earnings.
“Farmers will no longer be waiting for weeks, months or entire seasons to be paid. Timely payment is not a favor to the farmer; it is the farmer’s right,” President Ruto said.
William Ruto - President of Kenya
The reforms form part of the Government’s wider strategy to revive coffee farming, a sector that directly supports more than 700,000 smallholder farmers and contributes significantly to Kenya’s export earnings.
In a major shift aimed at improving returns, the President announced that at least 80 per cent of proceeds from every coffee sale will go directly to farmers, with service providers sharing the remaining 20 per cent.
President Ruto said the Government has streamlined the coffee value chain and curtailed the influence of brokers who for years exploited farmers through multiple licences and opaque transactions.
He said the reforms are already bearing fruit, with coffee prices rising from about Sh50 per kg (US$0.33 at the current exchange rate of about Sh150 to the dollar) to Sh158 (US$1.05) over the past two years. The Government is now targeting returns of up to Sh250 per kg (US$1.67), a move expected to encourage more farmers to invest in the crop and expand acreage under cultivation.
To support the revival program, the Government has rolled out subsidized fertilizer, quality seedlings, extension services, irrigation support and modern farming equipment. President Ruto said Sh18 billion (US$120 million) has been allocated to the fertilizer subsidy program, lowering the price of fertilizer from Sh7,500 (US$50) to Sh2,500 (US$16.67) per bag and significantly reducing production costs.
The Government has also allocated Sh2 billion (US$13.33 million) to clear outstanding debts owed to coffee farmers, Sh1 billion (US$6.67 million) to support cooperative coffee factories through county governments, and another Sh1 billion (US$6.67 million) for the distribution of quality coffee seedlings.
The Direct Settlement System and the revised revenue-sharing formula are expected to inject fresh momentum into the sector, which has long been weighed down by delayed payments and low farm-gate prices. Officials say the five-day payment cycle will be enforced through a digital platform linked to cooperative societies and licensed millers, giving farmers full visibility of transactions.