Licensing of more players in the coffee sector creates a storm

The proposal by Agriculture Food Authority (AFA) to grant licenses to 10 additional coffee players to facilitate value addition, and growers in the direct sales has created mixed reactions in the market.

The regulator in the Kenya Gazette proposed issuance of licenses to the firms that have complied with the Crops Act of 2013, the Crops (Coffee)(General) Regulations, 2019, a move that has raised eye blows in the sector. 

In the analysis, seven companies will be mandated towards coffee exports, imports and value additions, roasting and packaging, while three others will be involved to facilitate the  growers in the direct sales.

Kirinyaga Senator Kamau Murango highlighted that the new scheme by the regulator contravenes the Coffee General Regulations 2019, and also goes against the Coffee Bill currently before the National Assembly.

“Farmers suspect a sinister motive, and the majority will not agree with it,” said Murango.

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Simon Mwangi says the licensing of the more players should match with the production of the commodity, which presently has reduced, owing to the urbanisation in the counties of Murang’a and Kiambu.

The regulator, Mwangi suggests, should instead recruit more agronomists to work with the growers focusing on increased production in the next five years.

“We are not objecting to the proposal but if not scrutinized, coffee from other countries will be sneaked in and registered as Kenyans,” said Mwangi.

Sarah Nyambugi, a farmer from Mukurwe ini, in Nyeri warns the regulator against playing politics with coffee, and instead adheres to the existing regulations that helped to liberate the sector from the york of cartels.

Nyambugi questions the role of the facilitator in the direct sale, while the cooperatives and estates  have been seeking licenses from AFA to venture into the  export market.

“Unless checked the regulator is creating more players at the expense of the growers,” said Nyambugi.

Chairman at Gatagua farmers cooperative society in Murang'a,  Mr Nahason Chege, appreciates the licensing of the additional players with anticipation of better coffee prices in the future.

Chege says there is a need for the registration of more players in the coffee market to help scout  for better prices in the coming years, as the growers are encouraged towards increased production.

“The farmers are eagerly awaiting for the licensing of the dealers, as they feel oppressed by the current prices, despite the claim that Kenya’s coffee blends the produce from other countries yet low payment,” said Chege.

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