Coffee farmers across Kenya are threatening to withdraw from the National Coffee Exchange over growing frustrations with the government’s Direct Settlement System (DSS) — a payment system they say is unfair, non-transparent, and forced on them without consultation.
Leaders of coffee cooperative societies from 10 counties — including Bomet, Kericho, Baringo, Nyeri, Kisii, Kirinyaga, Makueni, West Pokot, Machakos, and Bungoma — have announced they are ready to pull out of the National Coffee Exchange.
Instead, they plan to register a new umbrella organization to sell their coffee independently, bypassing the current exchange system they accuse of colluding with the government to impose DSS.
“We cannot continue to do business with a system that is clearly designed to oppress farmers,” said Felix Mwai, Chairman of the National Coffee Cooperative Union (NACCU).
The Direct Settlement System (DSS) is a new government-backed payment platform meant to streamline how farmers receive their earnings. While it’s intended to increase transparency and reduce middlemen, farmers claim it is doing the opposite.
They argue that:
Brokers and financial institutions are controlling the system.
Farmers are being forced to accept terms they never agreed to.
The system allows people who don’t own coffee farms to influence decisions.
DSS makes timely payments difficult, leaving farmers waiting longer to access their money.
Speaking in Kirinyaga County, cooperative leaders said they had sued the government to stop the DSS implementation. They attended a scheduled court hearing on the matter, but the case was adjourned to September 3, 2025.
Bahama Muriithi, NACCU’s Secretary General, called on President William Ruto to stop engaging with brokers and cartels who do not represent the true interests of farmers.
“Let the President meet real coffee farmers — those who wake up early and tend to their crops — not brokers who don’t even own coffee farms,” Muriithi said.
If the farmers follow through on their threat to boycott, this could disrupt the National Coffee Exchange, Kenya’s centralized marketplace for coffee trading.
It could also:
Affect Kenya’s coffee exports, a key part of the economy.
Leave international buyers uncertain about supply chains.
Deepen tensions between the government and coffee producers.
With the court hearing set for September 3, farmers are hoping for a ruling that protects their rights and stops DSS implementation until proper consultations are held.
Coffee farming has long been a source of income for thousands of rural households, but in recent years, farmers have suffered due to:
Low prices
Delayed payments
Poor governance in cooperatives
Lack of market access
Heavy involvement of middlemen
The government’s push for DSS was meant to address these issues, but many farmers feel it was rushed, and does not solve the real problems.
