MP Gathoni Wamuchomba Calls Out New Levies Targeting Coffee Farmers

By John Kariuki

Githunguri Member of Parliament Gathoni Wamuchomba has strongly condemned the government’s introduction of new levies in the coffee sector, warning that they will significantly reduce farmers’ earnings. The legislator has termed the move irregular, unconstitutional, and a blatant act of greed against hardworking coffee farmers.

The government had earlier promised better coffee payments in 2024, raising farmers’ expectations. However, in December 2024, the Cabinet Secretary for Finance and Planning gazetted new levies that impose a 1.8% charge on coffee brokers for every transaction at the Nairobi Coffee Exchange (NCE). Additionally, annual membership fees for all brokers at the Capital Markets Authority (CMA) were significantly increased.

According to Wamuchomba, these changes were strategically introduced immediately after Parliament rejected the same proposed levies during debates on the Coffee Bill in December. The government, she says, then secretly reintroduced them without parliamentary approval.

Wamuchomba has raised critical concerns about the legality and fairness of these levies. She questions whether the regulation was approved by Parliament, which was on recess at the time, and whether there was any public participation before the levies were introduced. She also challenges why the Direct Settlement System (DSS) is charging a levy when it is already anchored on a bank that earns transaction fees deducted from farmers’ money. Furthermore, she asks whether President William Ruto authorized the Treasury CS to introduce these levies.

Wamuchomba has vowed to push for the nullification of these regulations in Parliament, calling on MPs and Senators to join her in fighting against this unfair taxation on coffee farmers. She is urging farmers and the public to lobby their elected leaders to oppose these levies and ensure that the interests of coffee growers are protected.

Kenya’s coffee sector remains a crucial economic pillar, and any reforms should be aimed at boosting farmers' earnings rather than burdening them with new deductions. The question now is whether Parliament will listen to farmers’ concerns or allow these levies to take effect despite widespread opposition. The battle for fair coffee trade is on—will the farmers win?

March 22, 2025