THE KENYAN DILEMMA

As of today, we are informed that some milling facilities are operational but are experiencing significant delays. We plan to complete the selection process by the end of February and start milling in March. Our target is to have the coffee in Barcelona by April. However, there may be unforeseen delays, so we suggest you stay informed and caffeinated.

​Kenyan coffee has always been highly valued by roasters and importers, and international prices serve as a benchmark for the local price on the Nairobi Coffee Exchange. However, the coffee sector is currently struggling and in need of renewal, as more and more farmers abandon coffee farming in favour of better-paying enterprises such as real estate and avocado cultivation. The government is working to halt the decline, as there are concerns that the once-thriving coffee sub-sector has lost its lustre.

In January 2023, President William Ruto signed an executive order tasking his deputy, Rigathi Gachagua, to spearhead reforms in the coffee and tea sub-sectors. The campaign has proposed several changes, including the introduction of a direct settlement system (DSS) to ensure prompt and transparent payment of revenues from coffee sales. The campaign also seeks to push for the enactment of the Coffee Bill 2023, which aims to reorganise the industry by transitioning the regulatory and commercial functions currently performed by the Agriculture and Food Authority to the Coffee Board of Kenya.

However, these planned reforms have caused chaos in the sector, with delays in the issuance of marketing and milling permits. This has left millers and traders without stocks for processing and sale. All private coffee mills in Kenya have reportedly closed their operations this season due to the failure of government-backed coffee sector reforms. NKG Coffee Mills Kenya, part of Germany's Neumann Kaffee Gruppe, announced that it will lay off staff at the end of February.

We will keep you updated on the Kenyan dilemma.

​ Enjoy your Kenyan coffee!