We Must Intensify Efforts To Revive Kenya's Coffee Sector

we must intensify efforts to revive kenyas coffee sector

The 1980s can be considered to be the golden age of coffee farming in Kenya. Annual production peaked at 128,926 metric tonnes in 1987/88 and the sector emerged as a key driver of the national economy. Fast forward to today, and the picture is starkly different. Output has fallen by more than half over the decades, reaching just 48,700 metric tonnes in 2023, according to the Kenya National Bureau of Statistics Economic Survey 2024 .

Once-flourishing coffee estates have been fragmented, as farmers turn to alternative crops or sell off parcels of land to real estate developers promising instant fortunes. By some estimates , the acreage under coffee in Kenya has declined by 30 from 170,000 ha in the 1990s to 119,000 ha in 2020.

The unmissable irony is that Kenya has failed to expand its coffee production at a time when the Arabica blend that is grown in the country is fetching a hefty premium in international markets. Arabica coffee futures, which track the price movements of Arabica coffee beans in global commodity markets, are currently trading at 370 per 60 kilograms - compared with a 100-150 price range recorded in 2019 and 2020.

Indeed, it's worth highlighting that of all of Kenya's agricultural exports, none commands a greater price in international markets than coffee. This translates to higher incomes for coffee farmers. The Economic Survey indicates that coffee farmers earned Sh61,416 per 100 kg of coffee in 2023. In comparison, tea farmers earned Sh28,371. With coffee farming looking increasingly lucrative, the question on many minds is: how can Kenya reverse the fortunes of the coffee sector and expand output?

Supporting smallholder farmers

If Kenya is to revive its coffee sector, targeted interventions aimed at smallholder farmers are crucial. This is because an estimated 70 of coffee in the country is produced by smallholders, who group together in cooperatives to manage their farms more effectively. However, coffee farming is a demanding venture that requires significant labour, capital investment, and technical expertise.