Court Halts Direct Settlement System for Coffee Farmers Pending Public Participation
Farmers expressed concern that small mobile payments could encourage impulsive spending, making it difficult to save for significant expenses like school fees
Kerugoya High Court judge Edward Muriithi has temporarily suspended the government’s plan to implement the Direct Settlement System (DSS) for coffee farmer payments until May 20, 2026
The decision came as the court ruled on a case challenging the Capital Market (Coffee Exchange) (Fees) Regulations 2024, noting that public participation had not taken place in 15 coffee-growing counties
Coffee farmers had filed the lawsuit, arguing that the DSS, which facilitates direct mobile payments, was introduced without proper stakeholder consultation or parliamentary approval
Farmers expressed concern that small mobile payments could encourage impulsive spending, making it difficult to save for significant expenses like school fees
“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,” the court noted
Following the ruling, coffee farmers from the region, led by the National Coffee Cooperative Union’s Felix Muriithi, Vice Chairman Muriithi Maina, and Kirinyaga Slopes Union Chairman Geoffrey Munyagia, took to the streets of Kerugoya, showing confidence in the judiciary’s decision
Kirinyaga Central MP Gachoki Gitari also praised the ruling, emphasizing the lack of proper public involvement in the process
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Judge Muriithi stated: “The government has six months to inform the court whether they have conducted public participation or abandoned the decision
The Capital Market Coffee Exchange Fees Regulations 2024 are suspended pending proper public engagement. The matter will be revisited on May 20, 2026, for further directions”
Writer : Mweru Mbugua
