Ruto Unveils Coffee Reforms, Pledges Faster Payments and KSh2 Billion Debt Settlement for Farmers
Ruto said delayed payments have been one of the biggest obstacles facing coffee farmers, forcing many to abandon the crop despite growing demand for Kenyan coffee in international markets.
President William Ruto/Courtesy.
By Fredrick Oseko
President William Ruto has announced a fresh package of reforms aimed at reviving Kenya’s coffee industry, including a commitment to ensure farmers receive payment within five days after delivering their coffee to the market.
Speaking in Kirinyaga County during the launch of a national coffee revitalisation programme, the President said the reforms are intended to address long-standing challenges that have undermined the profitability of coffee farming and discouraged growers across the country.
Ruto said delayed payments have been one of the biggest obstacles facing coffee farmers, forcing many to abandon the crop despite growing demand for Kenyan coffee in international markets. He noted that the government’s new payment framework would ensure growers are paid promptly, allowing them to reinvest in their farms and improve productivity.
According to the President, timely payments will help restore confidence in the sector and encourage more farmers to increase production.
“Our objective is to ensure that farmers benefit directly from their hard work. We want them to receive their earnings quickly so that they can improve production and support their families,” Ruto said.
The Head of State also announced that the government has set aside KSh2 billion in the 2026/27 financial year budget to clear outstanding debts owed to coffee farmers and cooperative societies.
He said many cooperatives have struggled under the burden of historical debts, limiting their ability to provide services to members and invest in modern farming practices. Clearing the arrears, he added, will strengthen the financial position of cooperatives and improve earnings for farmers.
The latest measures build on reforms introduced by the government over the past two years to restructure the coffee value chain. The administration has previously implemented direct settlement systems through the Nairobi Coffee Exchange and introduced measures intended to reduce the role of middlemen accused of exploiting farmers.
Government data shows that coffee remains one of Kenya’s most important export crops, supporting more than 700,000 smallholder farmers and millions of people who depend on the sector either directly or indirectly. Kenya is internationally renowned for its high-quality Arabica coffee, which attracts premium prices in global markets.
Despite its strong reputation, the industry has experienced a steady decline in production over the past several decades due to factors including delayed payments, rising production costs, land subdivision, climate-related challenges and mismanagement within some cooperative societies.
Ruto said the government is implementing a broader strategy to reverse that trend through improved access to certified seedlings, affordable fertilisers, extension services and market reforms.
He reiterated that agriculture remains central to Kenya’s economic transformation agenda and pledged continued support to farmers across all value chains.
During the event, the President also weighed in on the political debate surrounding the 2026 Finance Bill, criticizing legislators who opposed the proposed legislation. He argued that some leaders had misrepresented the government’s economic agenda and maintained that the administration’s policies are designed to stimulate economic growth, create employment opportunities and improve living standards.
Farmers attending the launch welcomed the proposed reforms, saying prompt payments and the settlement of cooperative debts could provide much-needed relief to struggling coffee-growing communities.
Many expressed optimism that the changes would address long-standing concerns that have affected the sector for years and help restore coffee farming as a profitable venture for thousands of households.
If successfully implemented, the reforms could mark a significant turning point for Kenya’s coffee industry, which remains a critical source of foreign exchange earnings and a key pillar of the country’s agricultural economy.
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