New KPCU PLC: Revolutionising agribusiness through innovation and farmer empowerment

Kenya’s coffee industry has long been a cornerstone of the country’s agricultural sector, contributing significantly to foreign exchange earnings and rural livelihoods. However, challenges such as fluctuating market prices, access to quality farm inputs, and limited agronomic knowledge have hindered farmers from fully realizing the potential of their produce. New Kenya Planters Cooperative Union (New KPCU PLC) is at the forefront of revolutionizing agribusiness by addressing these challenges through innovative solutions and farmer-focused initiatives.

Sustained Growth in Coffee Milling and Marketing

Since inception, New KPCU PLC has experienced sustained growth in its core operations. The operationalization of the Dandora, Sagana, Meru, and Tala milling plants, along with coffee collection points in Bungoma, Kisii, and Kitale, has significantly increased farmer access to services. The quantity of coffee received and milled rose by 173 percent – from 1,108 tons in 2019 to 3,025 tons in 2023. During the same period, the value of coffee sold surged from Ksh227.8 million to Ksh820.3 million, highlighting the corporation’s impact in driving profitability for farmers.

Enhancing Access to Quality Farm Inputs

In line with a presidential directive issued on October 20, 2021, New KPCU PLC implemented the Coffee Farming Inputs Subsidy Programme, benefiting over 131,000 farmers with farm inputs worth Ksh1.44 billion. Additionally, approximately 200,000 farmers were sensitized on best coffee farming practices, access to subsidized farm inputs, and emerging trends in the coffee sector. These efforts have significantly improved farm productivity.

Financial Empowerment

Financial constraints have often limited farmers’ ability to invest in their coffee farms. Recognizing this, the government mandated New KPCU PLC to administer the Coffee Cherry Advance Revolving Fund (CCARF) starting in 2020, allocating Ksh3 billion for this purpose. In October 2023, the government approved an additional Ksh4 billion to enhance the fund, bringing the total to Ksh7 billion. As of February 07, 2025, approximately Ksh7.6 billion had been disbursed, benefiting over 527,000 coffee farmers.

Agronomy Training and Capacity Building

New KPCU PLC invests in farmer education through agronomy training programs conducted by seasoned experts. These training sessions cover critical areas such as soil health management, pest and disease control, and climate-smart farming techniques. This enhances farmers’ ability to improve yields, reduce losses, and maintain the high quality that Kenyan coffee is known for worldwide. In addition, New KPCU is empowering youths into coffee farming through training and capacity building in coffee education, ensuring the sustainability of the industry by attracting a new generation of farmers.

Key Achievements in Infrastructure and Technology

1. Operationalization of New KPCU Branches: Four coffee milling facilities in Dandora, Sagana, Tala, and Meru have been fully operationalized, alongside coffee collection points in Tala, Kisii, Bungoma, and Kitale, improving farmer access to essential services.
2. Renovation of Buildings and Warehouses: Between 2019 and 2022, nine warehouses at New KPCU branches and the headquarters – Wakulima House – were refurbished to optimize company asset utilization. The ongoing refurbishment includes warehouses in Nairobi, Meru, Sagana, Nanyuki, Nakuru and Bungoma, ensuring farmers are accessible to improved storage and handling of their coffee and maintaining quality, while also enhancing New KPCU’s operational efficiency and capacity to serve more farmers effectively.
3. Acquisition of Modern Cupping Laboratory Equipment: Advanced coffee cupping laboratory equipment was acquired for Sagana, Meru, and Dandora branches, enhancing coffee quality assessment and grading.

Leveraging Technology for Efficiency and Growth

New KPCU PLC integrates digital solutions to streamline operations and enhance farmer engagement. The company has adopted advanced milling and processing technology to maintain coffee quality standards, ensuring that farmers receive the best value for their produce. Additionally, digital platforms enable farmers to track payments, access market trends, and receive agronomic support remotely. These technological interventions have reduced inefficiencies and increased transparency in the coffee value chain.

Improving Market Access and Coffee Sales

New KPCU is keen on improving market access and coffee marketing through the establishment of direct sales avenues, which often fetch better prices than the process at the Nairobi Coffee Exchange. By selling farmers coffee directly to international buyers, New KPCU ensures that farmers maximize their earnings while eliminating unnecessary intermediaries.

Coffee Revitalization through Cooperatives

New KPCU is at the centre of coffee revitalization through cooperatives, aiming to promote production and productivity in coffee farming. This is being achieved through the provision of seedlings and training of farmers in both traditional and emerging coffee growing regions in Kenya, ensuring that coffee farming remains sustainable and profitable for smallholder farmers.

Transforming Livelihoods and Boosting Foreign Exchange Earnings

By empowering coffee farmers with better access to inputs, financial support, training, and technology, New KPCU PLC has directly contributed to improved household incomes and overall rural economic development. With higher productivity and quality assurance, farmers can command better prices in international markets, thus increasing Kenya’s foreign earnings. The company’s commitment to fair trade and sustainable practices ensures that Kenyan coffee remains a sought-after commodity globally, further strengthening the nation’s economic standing.

As Kenya continues to navigate the evolving global agricultural landscape, New KPCU PLC remains steadfast in its mission to drive growth, sustainability, and prosperity for coffee farmers and the nation at large.