Kenya to Launch Online Coffee Trading Platform to Eliminate Cartels

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Kenya to Launch Online Coffee Trading Platform to Eliminate Cartels

In a bold move to end decades of exploitation in the agricultural sector, the government has announced plans to launch Kenya’s first online coffee trading platform to connect farmers directly with local and international buyers.

Agriculture CS Mutahi Kagwe, together with Cooperatives CS Wycliffe Oparanya, said the digital system will change how coffee is marketed and sold, and end the influence of cartels that have been manipulating prices to the detriment of small-scale producers.

Speaking on Wednesday, Kagwe said the digital shift will bring transparency, efficiency and fair returns.

“You can’t market the same way year after year and expect different results; that’s madness,” he said.
“We’ve agreed that the auction must go online so that global buyers can participate directly. Cartels will no longer hold the market hostage. Technology will bring transparency and better prices for our farmers.”

The digital auction will be run through the Nairobi Coffee Exchange (NCE) and will open up Kenya’s coffee trade to buyers worldwide, increase competition and restore confidence in the sector.

Kagwe said Kenya earned Ksh40 billion from coffee exports last year, a far cry from the Ksh100 billion in the 1980s. He attributed the decline to low productivity, mismanagement and exploitation by brokers.

To reverse this trend, the government is rolling out a comprehensive coffee revitalisation programme which includes:

• Expanding coffee-growing zones,
• Increasing productivity per tree from 3 kilos to 30 kilos, and
• Deploying agricultural extension officers from local institutions to train farmers.

CS Oparanya said the ministry aims to triple coffee production from 50,000 metric tonnes to 150,000 within three years. He said over 1,176 cooperative factories are being modernised across 22 counties to increase processing capacity.

“The reforms must put the farmer at the centre of every decision. That’s the only way to ensure sustainable growth,” Oparanya said.

He added that seedling production is being ramped up through agencies like New KPCU to meet increasing demand as more farmers go back to coffee farming.

Meanwhile, Kagwe said Kenya will present proposals at the World Food Forum in Rome next week to push for African coffee markets to operate independently. The goal, he said, is to strengthen Africa’s global competitiveness and increase earnings for local farmers.This is the beginning.

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Kenya to Launch Online Coffee Trading Platform to Eliminate Cartels