Kenya’s Kerugoya High Court has suspended the government’s implementation of its DSS (Direct Settlement System) for paying coffee farmers, with the suspension to 20 May 2026.
The policy was initially introduced in 2023 by Co-operatives Cabinet Secretary Wycliffe Oparanya and was first meant to be implemented in July 2025.
Under the program, every kilogram of coffee delivered to a cooperative society was to be valued at 40 Kenyan Shillings (US$0.31), with 80 per cent to flow directly into the farmer’s account. Any surplus after costs could also be distributed back to farmers as a bonus.
Coffee farmers filed a court petition seeking to overturn the implementation of the new system, citing the impact it could have on their ability to save money.
According to Judge Edward Muriithi, the lack of public engagement with Kenya’s 15 coffee-growing counties and lack of parliamentary approval led to the suspension.
“Public participation, both before and post formulation and gazettement, was violated,” says Judge Muriithi. “In addition, the facilitation through the regulatory impact assessment statement, which is so important for effective public participation, was not done.
“The national assembly committee on delegated legislation did not facilitate public participation on the stage of committee deliberation.”
The case will be returned to the courts on 20 May 2026.
