A new centralized payment system managed by Co-operative Bank of Kenya is set to transform how coffee farmers receive earnings. Announced by the Cabinet Secretary for Cooperatives and MSMEs, Wycliffe Oparanya, the initiative will launch in July 2025, targeting inefficiencies and a lack of transparency that have long plagued the sector.
Under the revamped model, farmers will receive 80% of their coffee sale proceeds directly into their individual Co‑op Bank accounts, while 20% will remain with cooperative societies to cover operational costs. Any deviation from this arrangement will require written approval from the ministry, ensuring greater accountability.
This streamlined system is expected to dramatically cut the payment wait time – with disbursements scheduled within five days of sale at the Nairobi Coffee Exchange. The goal is to replace costly delays that have forced many producers into short-term borrowing just to meet immediate needs.
While cooperative societies will still support production—facilitating access to inputs such as fertilizers and crop protection—their role in financial distribution will be significantly reduced.
At a recent meeting in Ndumberi, Kiambu, CS Oparanya defended the overhaul. “Coffee growers have endured years of exploitation within their own ranks. This step is long overdue,” he asserted.
However, not everyone is convinced. Francis Ngone, Chair of the Murang’a Coffee Farmers’ Co‑operative Union, cautioned that sidelining cooperatives from payment flows could disenfranchise farmers who depend on their networks for more than just money. Murang’a County alone has 144 factories under 52 cooperative societies that serve vital support functions.
The switch marks a pivotal moment for Kenya’s beleaguered coffee industry. Whether Co‑op Bank’s stewardship delivers sustained efficiency and fairness remains to be seen—but farmers and stakeholders alike support the hope for a fairer future in the sector.
