President William Ruto has signed into law reforms reshaping Kenya’s coffee industry, establishing a new Coffee Board of Kenya and shifting regulation away from the Agriculture and Food Authority (AFA).
- •The enactment of the Coffee Act, derived from the Coffee Bill (Senate Bill No. 10 of 2023), sets in motion a broad institutional overhaul of one of the country's most storied export industries.
- •Under the law, the Coffee Board of Kenya will oversee licensing across the industry, maintain national registers of coffee dealers, collect market intelligence and coordinate development strategies for the sector.
- •The law also introduces a new funding mechanism for the industry through a 2.5% Coffee Development and Marketing Levy applied to the value of coffee exports and imports.
Proceeds from the levy will be distributed among sector institutions and development initiatives aimed at reviving production and strengthening market promotion.
Kenya’s coffee industry, once a pillar of the country’s agricultural economy, has long been marked by declining output, fragmented regulation, and persistent disputes across the value chain.
The new law attempts to impose administrative order on that landscape by creating a more centralized regulatory framework while distributing operational roles across multiple authorities. Under the new regime, the Coffee Board will serve as the sector’s principal regulator, responsible for licensing a range of industry participants including warehouse operators, buyers, cupping laboratories and importers.
It will also oversee industry policy implementation, financing strategies and promotional campaigns designed to expand the market presence of Kenyan coffee at home and abroad.
Certain financial market functions within the coffee trade will fall under the jurisdiction of the Capital Markets Authority (CMA), which will issue licenses related to coffee exchanges and brokerage activities.
The legislation also establishes the Coffee Research and Training Institute, a scientific body mandated to drive research, innovation and technical training across the industry.
The institute will lead research into coffee diseases, develop improved and climate-resilient coffee varieties, and promote sustainable farming systems. It will also coordinate research activities nationwide and provide scientific advisory services to national and county governments.
The institute is intended to serve as the sector’s primary center for agricultural research and knowledge dissemination, bridging laboratory work with farm-level production through training programs and technical guidance for growers and cooperatives.
Growers, millers, roasters, nursery operators, estates and cooperative societies will be required to register with their respective county governments, bringing a wide array of actors under a formal regulatory registry for the first time. Counties will handle registration of sector participants and maintain local industry records, while national institutions oversee policy, regulation and market development.
By reorganizing the sector around new institutions, licensing structures and financing mechanisms, the Coffee Act aims to create a more coordinated and transparent framework for an industry that remains a key source of rural income and foreign exchange despite decades of declining production.
Kenya’s coffee exports declined slightly in volume in 2025, falling to 41,562 metric tons from 44,871 metric tons the previous year, as mid-year trading recesses disrupted the flow of beans. Despite the lower volumes, export prices surged, averaging US$7.21 per kilogram compared with US$4.90 in 2024.
