Kenya's coffee industry has undergone a significant transformation with the introduction of the Coffee Act 2026, which came into force on March 27. The new law establishes a standalone regulatory structure under the Coffee Board of Kenya, replacing the previous arrangement under the Agriculture and Food Authority (AFA). The Coffee Board is now responsible for regulating, developing and promoting the industry.
The Coffee Board has several key responsibilities, including maintaining a national database of coffee dealers, conducting market research, developing branding strategies and promoting Kenyan coffee in overseas markets. The Board is also mandated to collaborate with the Kenya Bureau of Standards (KEBS) in developing and enforcing industry standards and codes of practice. Additionally, it will provide technical assistance to county governments and coordinate participation in international coffee forums.
County governments will retain significant responsibilities under the Act, including maintaining registers of coffee growers, nursery operators and cooperatives. They will also oversee licensing activities, inspect coffee-processing facilities and provide agricultural extension services. The law requires counties to support sustainable coffee production, primary processing and climate-smart agriculture. Individual growers who belong to a registered coffee cooperative or association in the same county are exempt from separate county registration.
The Coffee Act overhauls the licensing process, dividing responsibilities among the Coffee Board, county governments and the Capital Markets Authority (CMA). The Coffee Board will handle licences for activities such as coffee buying and commercial milling, while county governments will issue licences for activities including coffee warehouses and grower milling. The CMA will license coffee exchanges and brokers operating through those exchanges.
The new law also introduces new rules for coffee trading and payments. Kenyan coffee can be sold through auctions at licensed exchanges, direct sales and international exchanges. Growers can pursue direct-sale arrangements with overseas buyers, subject to prescribed conditions. The Act requires the price offered in a direct-sale arrangement to compare favourably with the exchange price.
The Coffee Research and Training Institute of Kenya has been established to provide research support to the industry. The Institute will research coffee diseases and new varieties, develop improved production technologies and provide training to farmers and other industry participants. Its headquarters will be located in Kiambu County.
The Coffee Act 2026 aims to revive Kenya's coffee industry, boost transparency and maximize earnings for local farmers. The law provides a highly specialized regulatory regime designed to improve governance, cut down red tape and increase farmer earnings. With the new regulations in place, the industry is expected to experience significant growth and development.
Key points
- The Coffee Act 2026 establishes a dedicated industry regulator, the Coffee Board of Kenya.
- The law introduces new rules governing coffee production, processing and sales.
- County governments retain significant responsibilities under the Act, including maintaining registers of coffee growers and overseeing licensing activities.
