Waiguru Champions Debate on Coffee Direct Settlement System

In Summary

• Governor Anne Waiguru leads stakeholder talks on Coffee Direct Settlement System (DSS).
• Meeting involved CMA, AFA, NCE, and Kirinyaga coffee cooperatives.
• Farmers raise concerns over DSS bypassing cooperatives, risking their role.
• Waiguru calls for inclusive dialogue to protect smallholder farmers’ interests.
• Consensus sought to ensure fair, timely payments and cooperative sustainability.
• Follow-up meetings planned to refine payment model by September 2025.

Kirinyaga Governor Anne Waiguru has spearheaded a consultative meeting to address concerns over the proposed Coffee Direct Settlement System (DSS), aimed at ensuring fair and timely payments to coffee farmers. Held on July 17, 2025, in Kerugoya, the meeting brought together representatives from the Capital Markets Authority (CMA), Agriculture and Food Authority (AFA), Nairobi Coffee Exchange (NCE), and chairpersons of Kirinyaga’s Coffee Farmers’ Cooperative Societies and Unions.

The DSS, part of ongoing coffee sector reforms, proposes direct mobile payments to farmers, bypassing traditional cooperative structures. While intended to enhance transparency and speed up payouts, farmers and cooperatives fear it could undermine their role and financial stability. “We must ensure reforms benefit farmers without dismantling the cooperative system that supports them,” Waiguru said, emphasizing inclusive dialogue to address divergent views.

Joseph Gichoya, a farmer with Baragwi Cooperative, highlighted the reforms’ potential but stressed the need for clarity. “Direct payments sound good, but we need guarantees that cooperatives won’t collapse, as they provide critical support like inputs and training,” he said. The cooperative, which earned KSh 145 per kilogram of cherry in 2024, credits reforms for breaking cartels but remains cautious about DSS implementation.

Deputy Governor David Githanda, speaking at Ushirika Day on July 7, 2025, echoed the call for dialogue. “The Cabinet Secretary for Cooperatives must engage all stakeholders to safeguard farmers’ interests,” he urged, noting concerns that DSS could disadvantage small-scale producers.

The CMA, tasked with overseeing NCE operations, has faced opposition from brokers over reduced commissions under the Capital Markets (Coffee Exchange) Regulations 2024. A nine-member committee, appointed by Cooperatives CS Wycliffe Oparanya in February 2025, is guiding the NCE’s transition to ensure transparency, but farmers demand broader consultation.

Waiguru’s leadership ensured stakeholders agreed to consult their constituents to build consensus, avoiding unilateral decisions. “This meeting gave farmers a platform to voice concerns, ensuring their views shape the national conversation,” said Sarah Kebirigo, a local farmer. Follow-up meetings are planned to refine the payment model by September 2025, aligning with the 2025/2026 coffee season preparations.

The initiative supports national reforms, including a KSh 6.6 billion debt waiver for coffee cooperatives and a KSh 8.9 billion Cherry Advance Revolving Fund, benefiting 580,000 farmers. Kirinyaga, a key coffee-producing county, aims to sustain its gains, with cooperatives targeting 6 million kilograms of cherry by 2027.