Kenya has launched a sweeping National Coffee Revival Through Cooperative Societies Programme that promises faster, higher payments to farmers even as the core payment system behind it remains under a court suspension and faces farmer resistance.
President William Ruto unveiled the Coffee Revitalisation Programme on 22 June 2026 at Kianyaga Stadium in Kirinyaga County, pledging that farmers would be paid within five days of delivering coffee and that they must receive at least 80% of sale proceeds directly, according to The Star, Mt Kenya Times and 001 FM, which all reported from the event.
The programme’s headline targets include tripling national coffee production from 50,000 metric tonnes to 150,000 metric tonnes by the 2028/2029 season and lifting farmer earnings from around Sh158 per kilogram to between Sh250 and Sh300 per kilogram, according to coverage by Nairobi Wire, Radio Generation and The Star. Business outlet Business Today reported that such a production increase would significantly alter global Arabica supply and enhance Kenya’s competitiveness.
Yet the Direct Settlement System (DSS) that underpins the promise of rapid, direct payouts has been frozen by Kenya’s courts and sharply contested by some of the very farmers it is meant to benefit. The government introduced DSS in 2023, routing coffee proceeds through a central settlement account so that farmers would receive 80% of the sales value directly, with every kilogram initially valued at 40 Kenyan shillings (about US$0.31), according to Sacco Review and Global Coffee Report.
On 18 November 2025, Justice Edward Muriithi of the Kerugoya High Court suspended implementation of DSS until 20 May 2026, finding that public participation had not been carried out in 16 coffee-growing counties and that parliamentary approval and a regulatory impact assessment were lacking, Global Coffee Report noted. In the same ruling, quoted by the publication, the judge stated that “public participation, both before and post formulation and gazettement, was violated.”
Farmer groups had petitioned the court to halt DSS, and Sacco Review reported that many farmers strongly rejected direct mobile payments, fearing the collapse of cooperative societies that traditionally channel payments and offer savings and credit services. Following the ruling, Commissioner of Co-operatives David Obonyo told Sacco Review, “We will not impose regulations that farmers don’t want,” adding that the government would ensure mechanisms for farmer participation and dialogue.
Despite this, Ruto used the June 2026 launch to vigorously defend the direct payment approach. “Farmers should get their pay on the fifth day after sale. This will ensure that the farmer has money when they need it. It is not a favour; it is a right,” he said, according to Radio Generation. Nairobi Wire also quoted him telling the Kirinyaga gathering, “We have agreed now that farmers should get their money within five days. That is a must; we are not begging anyone.”
Business Today and Mt Kenya Times both reported that under the current reform design, farmers are to receive at least 80% of coffee sales proceeds, with service providers sharing the remaining 20%. At the launch, Ruto argued that prices had already improved under his administration, telling Radio Generation that “coffee here used to sell at Sh30, Sh50, Sh60, and Sh70. Today in Kenya, let us be honest, a kilogram of coffee is going at 120, 130, 140, 150, 158.”
Local leaders framed the stakes in human terms. Kirinyaga Governor Anne Waiguru told The Star that her county is home to 120,000 coffee farmers and that the crop remains a key economic pillar supporting thousands of families. The Star reported that Kirinyaga’s coffee output rose from 28,000 tonnes in 2017 to 49,100 tonnes in the 2025/2026 season, earning farmers Sh7.48 billion with payouts of Sh157 per kilogram on average.
To support the national push, the government has committed Sh18 billion to a fertiliser subsidy that cuts the price per bag from Sh7,500 to Sh2,500, set aside Sh2 billion to clear historical coffee sector debts, and earmarked another Sh2 billion for factory upgrades and seedling distribution, according to The Star and Radio Generation. An additional Sh979 million in debt relief is directed specifically to coffee farmers in Kirinyaga County, 001 FM reported.
Structural changes to the value chain are also underway. Ruto told 001 FM that the government has overhauled the coffee chain by limiting each operator to a single license, which he said would eliminate cartel control and prevent price manipulation. Business Today further noted plans to re-establish the Coffee Board as a standalone regulator, reversing a previous merger into the Agriculture and Food Authority, and reported that the government plans to raise domestic coffee consumption to 20% within five years.
However, political and legal tensions have persisted alongside these reforms. Mt Kenya Times reported that after Ruto’s launch speech, some farmers accused the government of disregarding the High Court’s directive on DSS. Sacco Review stated that the government has committed to conducting public participation forums across the affected counties, and Global Coffee Report noted that the DSS case is scheduled to return to court on 20 May 2026, underscoring that Kenya’s accelerated coffee revival plans remain closely tied to resolving the dispute over how farmers are paid.
