The Kenyan government has announced new coffee sector reforms and disbursed Ksh9.7 billion to farmers through the Coffee Cherry Advance Revolving Fund, aiming to double production within three years. This initiative seeks to reverse a significant decline in coffee output.

• Ksh9.7 billion disbursed to farmers via the fund, with production targeting to double from less than 70,000 metric tons to significantly higher levels.
• Co-operatives, Micro, Small and Medium Enterprises (MSME’s) Development Cabinet Secretary Wycliffe Oparanya announced the reforms, attributing past declines to market inefficiencies and weak governance.
• Key reforms include the Direct Settlement System for transparency, the successful Coffee Cherry Advance Revolving Fund, and upcoming legislation like the Coffee Bill 2024. Additionally, 10 companies will receive exclusive export, roasting, and packaging licenses.

In a fresh plan to boost farmer incomes, President William Ruto announced an elaborate strategy to curb post-harvest losses and invest in value addition at the 2026 Nairobi International Trade Fair. The government plans to establish modern agro-processing facilities and County Aggregation and Industrial Parks (CAIPs) across all 47 counties to process and store produce efficiently, cutting out middlemen.

• The government aims to grow value-added tea exports from the current 5 percent to at least 50 percent in the medium term.
• Kenya Tea Development Agency (KTDA) farmers will benefit from Ksh3.7 billion in concessional loans from the Kenya Development Corporation to modernize equipment and facilitate the switch to Orthodox tea production.
• President Ruto highlighted new trade agreements with the African Continental Free Trade Area, the European Union, China, and the United Arab Emirates to secure larger export markets for Kenyan products.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe defended the government's imposition of a 4 per cent levy on sugar, stating that a significant portion of the funds is dedicated to research to revitalize the struggling sugar sector.

• 40 per cent of the levy is earmarked for cane development and productivity enhancement.
• Agriculture Cabinet Secretary Mutahi Kagwe appeared before the Senate Committee on Delegated Legislation on Thursday, October 2.
• The levy aims to fund research to replace outdated cane varieties, which constitute 97 per cent of sugarcane in Kenya.