Court suspends state decision to implement DSS for payment to coffee farmers

While the court was delivering its verdict on a case challenging the Capital Market (Coffee Exchange) (Fees) regulations 2024, it noted that there was no public participation in 15 counties, which are coffee-growing areas.

Coffee farmers had filed a lawsuit in Kerugoya High Court against the government's decision to implement the Direct Settlement System (DSS) for payment. 

“The appointment of the commercial bank was against the law, public participation was violated, and the national assembly did not facilitate public participation at this stage,” court noted.

Farmers had expressed concerns that direct payment of small amounts via mobile phone could lead to impulsive spending, potentially affecting a farmer's ability to save for significant expenses like school fees.

The farmers said the government imposed the policy without proper stakeholder engagement or parliamentary approval with actual farmers rather than brokers.

Coffee farmers from the coffee growing zone, led by National Coffee Cooperative Union Felix Muriithi, Vice Chairman Muriithi Maina and Geoffrey Munyagia, the Chairman of Kirinyaga Slopes Union, stormed the streets of Kerugoya after the verdict, expressing confidence in the judiciary.

Kirinyaga Central MP Gachoki Gitari also expressed confidence in the judiciary, saying there was no proper public participation.

“The government has six months to inform the court whether they have conducted public participation or they have done away with a decision. The capital market coffee exchange fees regulations 2024 are suspended, awaiting public participation on the matter for a period of six months to avoid doubt, and the matter will be mentioned before the court for further directions on the 20th of May 2026,” Judge Muriithi said.