Nairobi Coffee Exchange reforms in Kenya have been extended to 2027. The working committee has more time to complete the transition to a new governance framework.

Nairobi Coffee Exchange reforms

Kenya has extended its long-running effort to overhaul how its coffee is traded by another year. The process has now dragged on for more than seven years since the regulations were first enacted.

In a gazette notice dated June 12, 2026, Cabinet Secretary for Co-operatives and MSME Development Wycliffe Oparanya extended the term of the Working Committee to June 2027. The current committee, chaired by Kenneth Gitonga, was gazetted in February 2025 for an initial 12-month term.

The committee is tasked with transitioning the Nairobi Coffee Exchange into the framework set out under the Capital Markets (Coffee Exchange) Regulations and the Crops (Coffee) General Regulations. This is not a simple administrative change. It is a fundamental restructuring of how Kenya’s coffee is bought and sold.

Its mandate includes reviewing the NCE’s legal ownership, advising on the transfer of its assets and liabilities, developing a governance framework for the new exchange, overseeing human resource structures, facilitating the CMA licensing application, and recommending related policy and legislative proposals.

The regulations underpinning the transition were enacted in 2019 and 2020. They provided for the Coffee Exchange and coffee brokers to be licensed and supervised by the Capital Markets Authority (CMA), with an original effective date of July 2020. That date has come and gone. The transition is still not complete.

By mid-2025, the committee reported that the Direct Settlement System (DSS) had been onboarded onto the NCE’s trading platform. This was a requirement under the Capital Markets (Coffee Exchange) Regulations for the settlement of coffee sales proceeds. The system allows payments to be processed directly, reducing delays and improving transparency.

Outstanding items under the committee’s mandate include the conversion of the NCE into a registered limited liability company with farmers as the majority shareholders. This is a major change. Currently, the exchange is structured differently. The new structure would give farmers more control over how their coffee is traded.

Other outstanding tasks include completion of the legal ownership and asset transfer process, finalisation of the governance framework, and the CMA licensing application for the new coffee exchange. These are not minor details. They are the core of the reform.

The Nairobi Coffee Exchange reforms in Kenya have been a long time coming. The coffee sector has struggled with low prices, poor governance, and lack of transparency. Farmers have complained that they do not get fair prices for their produce. Brokers and middlemen have been accused of taking too large a share of the value.

The reforms were supposed to change that. By bringing the exchange under CMA regulation, the government aimed to increase transparency and improve farmer returns. The new governance structure would give farmers a voice. The Direct Settlement System would ensure they get paid promptly.

But progress has been slow. Deadlines have been missed. The committee has requested more time. The latest extension means the transition will not be completed until at least June 2027.

The Nairobi Coffee Exchange reforms in Kenya are important for the entire coffee value chain. Farmers, exporters, and international buyers all have a stake in the outcome. A well-functioning exchange benefits everyone. It provides price discovery, transparency, and efficient settlement.

The delays are frustrating. Farmers who have been waiting for better returns have been disappointed. But the reforms are still moving forward. The DSS is operational. The committee is working on the remaining tasks. The end is in sight, even if it has taken longer than expected.

The extension to 2027 gives the committee more time to get the job done right. Rushing the process could lead to mistakes. The new exchange must be built on a solid foundation. That requires careful planning and implementation.

The Nairobi Coffee Exchange reforms in Kenya are a test of the government’s commitment to agricultural transformation. If the reforms succeed, other sectors could follow. If they fail, it would be a setback for the entire economy.

The coffee sector is too important to fail. Kenya produces some of the best coffee in the world. It earns foreign exchange. It supports millions of livelihoods. The reforms must succeed.

The extension to 2027 is not a sign of failure. It is a recognition that the task is complex. The committee has made progress. The DSS is already working. The remaining tasks will be completed. Kenyan farmers will finally get the coffee exchange they deserve. They have waited long enough. The end is in sight. The reforms will be completed. Coffee farming in Kenya will never be the same again.

https://farmerstrend.co.ke/wp-content/uploads/2026/06/Nairobi-Coffee-Exchange-reforms-1024x683.jpeghttps://farmerstrend.co.ke/wp-content/uploads/2026/06/Nairobi-Coffee-Exchange-reforms-150x150.jpegFarmersTrendFarming NewsNairobi Coffee Exchange reforms in Kenya have been extended to 2027. The working committee has more time to complete the transition to a new governance framework.Kenya has extended its long-running effort to overhaul how its coffee is traded by another year. The process has now dragged on for more...New Generation Culture in Agriculture