New Act to spur Kenya’s coffee renaissance

The assent of the new Coffee Act by President William Ruto marks a major turning point in Kenya’s agricultural and economic landscape.

Coming at a time when the country is seeking sustainable avenues for rural wealth creation, export growth, and economic resilience, the Act has injected renewed optimism into a sector that has historically been one of Kenya’s most valuable foreign exchange earners.

The momentum generated by the Coffee Act was further reinforced on June 22, 2026, when President Ruto launched the national coffee revival programme in Kirinyaga County, unveiling a comprehensive package of reforms aimed at restoring the sector’s competitiveness and profitability.

For decades, Kenya’s coffee industry has struggled with declining acreage, delayed farmer payments, weak cooperative governance, and mounting debts. The new law aims to change these aspects by enhancing transparency, developing marketing mechanisms, safeguarding farmers’ income and optimising sector management.

Most crucial it puts the farmer at the forefront of the coffee value chain, which means that producers are able to get a more equitable portion of the final price of their coffee.

The economic significance of these reforms for coffee farmers cannot be overstated. The crop remains one of Kenya’s highest-value agricultural commodities, particularly in counties such as Kirinyaga, Murang’a, Nyeri, Embu, and Kiambu. As part of the revival programme, the government has agreed to speed up payments and has asked the buyer to pay the farmers within five days of delivery.

Increases in household liquidity allow farmers to invest more in production, cover family commitments and lessen their need to obtain credit from informal lenders, whose interest rates and terms are often high.

Additionally, the government’s commitment to clear billions of shillings in historical coffee debts offers relief to farmers and cooperative societies that have long been burdened by financial constraints.

Beyond the farm gate, the coffee revival agenda carries substantial macroeconomic implications. Kenya’s economy continues to grapple with fiscal pressures, foreign exchange demands, and the need to reduce dependence on external borrowing.

Coffee production and export can make a big contribution to foreign exchange earnings, enhance the balance of payments and help to stabilise the Kenyan shilling. Greater export of agriculture also helps improve incomes in rural areas, boost the purchasing power of farmers and generate jobs in agriculture, processing, transport and financial services.

In that sense, coffee is not just an agricultural product, it is a national development tool that can drive other development goals.

Kenya’s renewed focus on coffee also aligns with the broader agenda of agricultural value addition. By encouraging local processing, branding, and direct market access, the reforms can increase export revenues, retain greater value domestically, and enhance Kenya’s competitiveness in global coffee markets

The coffee revival programme includes distribution of millions of certified seedlings, farmer training, extension services, and institutional support designed to improve productivity and quality. These interventions are expected to grow yields while preserving Kenya’s reputation for premium specialty coffee in international markets.

The significance of the Coffee Act extends beyond the interests of farmers and exporters. Sustainable growth in agricultural exports contributes to national economic stability, job creation, and government revenue generation.

Stronger export performance reduces pressure on the country’s foreign exchange market, supports currency stability, and enhances Kenya’s competitiveness in international trade. Furthermore, improved farmer incomes can contribute to poverty alleviation, reduce rural-urban migration pressures, and promote more balanced regional development.

Ultimately, the Coffee Act and the coffee revival programme represent more than agricultural reforms. They constitute an economic transformation strategy aimed at unlocking productive potential of thousands of Kenyan households.

If implemented consistently and supported by sound governance, these initiatives could herald the beginning of a new era in which coffee once again becomes a cornerstone of Kenya’s export economy and a catalyst for shared prosperity.

Jamlic Munyasya is an economist, business consultant and a corporate trainer