Coffee washing station (Ghana)

Kenya Boosting productivity and climate resilience in Kenya’s coffee cooperatives

Sub-Saharan Africa
DEG
Classic
Sustainable supply chains Education & Training

Kenya’s coffee sector is under increasing pressure due to climate change. Droughts are becoming more frequent, and smallholder coffee farmers lack the skills they need to adapt their cultivation methods as the climate changes. As a result, crop yields are falling at both individual and national level. Increasingly, too, the quality of the coffee beans harvested fails to meet international standards. This threatens not only the business of the Kenyan company Coffee Management Services Ltd (CMS) but also the ability of many people to continue earning a living from growing coffee. Against this background, CMS and DEG set up a develoPPP project to help three Kenyan coffee cooperatives make their coffee-growing business more resilient to climate change. The develoPPP programme is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

As a result of climate change, Kenyan coffee farmers have been harvesting fewer and fewer beans of increasingly poor quality for many years. In fact, some of their farming practices have actually contributed to climate change, soil degradation and an increase in pests and plant diseases. Kenyan coffee farmers are organised in around 450 cooperatives, some of which have up to 12,000 members. However, the cooperatives are often managed inefficiently, and their management boards lack the required management skills and knowledge. In order to be able to compete in the coffee sector in the long term, CMS needs larger quantities of high-quality coffee beans that meet international standards and fetch better prices. In turn, this will boost the incomes of farmers and make them more resilient.

The project of CMS and DEG provided funding of more than EUR 550,000 for three Kenyan coffee cooperatives with over 14,000 members. Various measures were implemented to make coffee-growing more profitable and more resilient to climate change.

  • New water-saving methods of coffee washing the harvested crop were introduced in the three cooperatives to separate the outer skin and pulp from the coffee beans.
  • Growers were trained to use this more sustainable coffee washing technique.
  • They also received training in efficient and climate-friendly farming practices.
  • Management training was provided for the board members of participating cooperatives to help them develop leadership, administration and financial management skills.

CMS also offers the cooperatives various services in areas such as marketing, certification, warehousing and financing.

The new cultivation methods and processing techniques improve the quality of the coffee. As a result, we can access international markets and get higher prices for Kenyan coffee. That benefits all of us equally – our company, the cooperatives and individual smallholders.
Catherine Ng’ang’a, Head of Sustainability, CMS
Coffee washing station (Ghana)
With the help of this coffee washing station, washing technology is becoming more water-efficient and sustainable. Photo: Coffee Management Services Ltd.
Members attend a training session (Ghana)
Coffee cooperative members attend a Coffee Management Services training session. Photo: Coffee Management Services Ltd.

At the end of the project, the farmers in each cooperative could point to increased productivity and improved quality, resulting in more premium grades.

  • An eco-friendly coffee washing method was introduced at eight washing stations and reduced processing costs by 43 per cent.
  • 64 coffee washing stuff were trained to use the new washing method.
  • Nearly 8,000 coffee farmers were coached how to apply efficient and climate-friendly agricultural practices through a course developed at the start of the project.

The pilot project has raised awareness of the environmentally friendly washing method in Kenya, and other cooperatives are looking to use this approach in the future. Actually, the national government of Kenya has started a programme to equip several other co-operatives with the same coffee washing machines.

DEVELOPMENT SUCCESSES

Arrow pointing up

The average yield from each coffee plant increased from 1.82 to 4.73 kg

Waterdrop

Around 10 million litres of water were saved

Stacked coins

On average, farm incomes from coffee-growing rose by 67 per cent

BUSINESS SUCCESSES

Box with quality stamp

The company now receives more and better beans for processing and marketing

Speech bubbles

It has also built stronger ties with the cooperatives

Woman working at a loom

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

Logo Coffee Management Service

Coffee Management Service Limited

Coffee Management Services Ltd (CMS) provides a wide range of agribusiness services in the Kenyan coffee sector and East Africa and promotes sustainable coffee farming in the region.

Logo KfW DEG

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

As subsidiary of KfW, DEG promotes the social and ecological transition of the private sector in developing and emerging-market countries. It supports partner companies with financing expertise and entrepreneurial know-how to implement impactful develoPPP projects under their own management.

Photo Catherine Ng’ang’a
Catherine Ng’ang’a Head of Sustainability Coffee Management Services (CMS)
Dr. Lars Oehler
Dr. Lars Oehler Project manager develoPPP DEG Impulse gGmbH