Kenya’s Coffee Act 2026 Explained: The Coffee Board, Licensing and Farmers’ Rights

For years, regulation of Kenya's coffee sector fell under the Agriculture and Food Authority (AFA), through its Coffee Directorate.

That arrangement has now been replaced by a standalone regulatory structure under the Coffee Board of Kenya.

The Coffee Act No. 8 of 2026, which came into force on March 27, establishes the Board as a corporate body responsible for regulating, developing and promoting the industry.

The change gives the coffee sector a dedicated institution to oversee licensing, dealer registration, market information, quality standards and international marketing.

The Board is also responsible for recommending sector policies and funding strategies to the Agriculture Cabinet Secretary and coordinating their implementation.

What powers does the Coffee Board have?

Under Section 11 of the Act, the Board has several responsibilities covering the coffee value chain.

These include maintaining a national database of coffee dealers, conducting local and international market research, developing branding strategies and promoting Kenyan coffee in overseas markets.

It is also mandated to collaborate with the Kenya Bureau of Standards (KEBS) in developing and enforcing industry standards and codes of practice.

Another responsibility is protecting the identity and reputation of Kenyan coffee through quality assurance, regional appellations and the Kenya Coffee Mark of Origin.

The Board is also expected to provide technical assistance to county governments, coordinate participation in international coffee forums and use digital marketing platforms to expand market access.

Its mandate therefore extends beyond regulating businesses. It includes developing the industry and positioning Kenyan coffee in international markets.

Counties still control important functions

Although the Coffee Board is the national regulator, county governments retain significant responsibilities under the Act.

Counties are required to maintain registers of coffee growers, nursery operators, cooperatives, associations and coffee estates operating within their jurisdictions.

They also oversee several licensing activities, inspect coffee-processing facilities, provide agricultural extension services and monitor the movement of coffee within and between counties.

The law requires counties to support sustainable coffee production, primary processing, climate-smart agriculture and compliance with industry standards.

Individual growers who belong to a registered coffee cooperative or association in the same county are exempt from separate county registration. Registration under this provision is free.

Who issues coffee licences?

The law divides licensing responsibilities among the Coffee Board, county governments and the Capital Markets Authority (CMA).

The Coffee Board handles licences and permits covering activities such as coffee buying, commercial milling, independent cupping laboratories, coffee liquoring, warehouse operations and processed coffee imports.

County governments issue licences for activities including coffee warehouses, grower milling and pulping stations.

They also handle coffee-roaster licensing in consultation with the Board, as well as certain coffee movement permits.

The Coffee Research and Training Institute is responsible for coffee nursery certificates, while the CMA licenses coffee exchanges and brokers operating through those exchanges.

This allocation means that businesses entering the coffee industry need to identify the appropriate licensing authority for their specific activity.

The Act also requires licence holders to act in the best interests of coffee growers, comply with licensing conditions and submit quarterly returns to the relevant regulator.

New rules for coffee trading and payments

The Coffee Act provides for several routes through which Kenyan coffee can be sold, including auctions at licensed exchanges, direct sales and international exchanges.

Growers can also pursue direct-sale arrangements with overseas buyers, subject to prescribed conditions.

For direct sales, a coffee sample of not more than 250 grammes must be submitted to an exchange for quality analysis and price discovery before the contract is concluded.

The exchange is required to issue a quality and price report within 14 days.

The Act further requires the price offered in a direct-sale arrangement to compare favourably with the exchange price.

Growers undertaking such sales must submit annual returns to the Coffee Board, including details of their contracts, coffee grades, quantities and prices.

For coffee sold through an exchange, proceeds must pass through a central settlement system and be paid into the grower's account within 14 days.

The Act specifies that, for this provision, a grower means a cooperative society or an estate.

Brokers and agents appointed by growers are prohibited from receiving coffee-sale proceeds on their behalf.

Research gets a separate institution

The law also establishes the Coffee Research and Training Institute of Kenya, with its headquarters in Kiambu County.

Its responsibilities include researching coffee diseases and new varieties, developing improved production technologies, identifying suitable planting materials and providing training to farmers and other industry participants.

The Institute is also expected to collaborate with universities, KALRO and other research organisations to transfer agricultural knowledge and improve productivity.

The aim is to strengthen the research support available to an industry that faces challenges involving pests, diseases, ageing trees, declining productivity and climate variability.