Why Kenya Could Stop Exporting Coffee to the EU by December 2024

Kenya is racing against time to comply with the European Union’s new regulations aimed at curbing deforestation and forest degradation linked to imported products, including coffee.

The Kenyan government has announced urgent measures to assist coffee farmers in meeting these stringent requirements before the December 2024 deadline to avoid a potential ban on Kenyan coffee exports to the EU. Cabinet Secretary for Agriculture Andrew Mwihia has reassured farmers and stakeholders of the government’s commitment to ensuring compliance. The EU Parliament recently passed legislation requiring that coffee sold in the EU must not contribute to deforestation, posing a significant challenge for Kenyan farmers who traditionally uproot coffee trees during harvesting.

The EU market is crucial for Kenya, accounting for 55% of its coffee exports, valued at approximately 800 million Kenyan shillings annually. The exports primarily consist of high-quality Arabica beans. To address the compliance challenges, the Ministry of Agriculture is drafting a memo to inform the Cabinet of the steps being taken. A multi-agency technical committee of experts has been formed to evaluate Kenya’s readiness and develop a comprehensive compliance framework. The EU Deforestation Regulation (EUDR), set to take effect on December 30, 2024, demands unprecedented levels of traceability and due diligence.

It requires geographic coordinates of the land where coffee is produced to verify that no deforestation occurs. This has raised concerns among coffee producers and importers, as many coffee-producing regions, including Kenya, face technological and financial barriers to providing the necessary data for compliance. To mitigate these challenges, the Kenyan government is exploring technological solutions, including the use of satellite imagery and geodata to monitor deforestation and verify compliance with the EUDR. However, the implementation of these solutions presents its own set of challenges such as varying definitions and quality of satellite images.

The Ministry of Agriculture has emphasized the importance of compliance with the Data Protection Act, 2019, warning against unauthorized entities collecting, analyzing, or storing grower information under the guise of assisting with compliance. The Ministry will manage all grower data through the Kenya Integrated Agricultural Management Information System (KIAMIS). The success of Kenya’s coffee sector in meeting the EU’s regulations will depend on the collective efforts of all stakeholders. Some EU coffee importers are accelerating shipments to stock up on coffee before the new regulations take effect, reflecting concerns about meeting the stringent standards and maintaining a steady supply of coffee to the EU market.

As Kenya works towards compliance, the International Coffee Organization (ICO) has noted that the new regulations could potentially exclude smallholder farmers from the EU market, which is a key source of income for many.