Kenya’s coffee sector, globally renowned for its high-quality Arabica beans, is on the verge of a significant transformation with the entry of The Coffee Club, an Australian café giant.
The launch of The Coffee Club in Nairobi, marking its first entry into Africa with a substantial KSh 1.3 billion (approximately USD 10 million) investment, is set to be a game-changer for local farmers, value addition, and domestic consumption, aligning perfectly with Kenya’s ambitious national goals.
The Coffee Club plans to establish 30 branches across East Africa by 2035, with at least 10 outlets in Kenya within the next five years. This expansive strategy is underscored by a crucial commitment: sourcing coffee locally through Dormans Coffee, a cornerstone of Kenya’s coffee processing and supply chain.
New Dawn for Domestic Coffee Consumption
Historically, a vast majority of Kenya’s premium coffee has been exported, with domestic consumption lagging significantly.
Recent figures from the Agriculture and Food Authority (AFA) show that local consumption modestly increased by 33.9 percent, from 1,464 metric tonnes in 2023 to 1,961 metric tonnes in 2024, representing about 4.17 percent of the nation’s total production.
However, the Kenyan government has set an ambitious target to raise domestic consumption to 20 percent of national production within the next five years.
Cabinet Secretary for Trade, Lee Kinyanjui, speaking at the launch, emphasised the strategic importance of this shift.
“The easiest way to stabilise prices for our farmers is to increase local demand,” Kinyanjui stated, noting that the government is pushing to foster a robust local coffee culture, especially among the youth.
The arrival of an international chain like The Coffee Club, with its proven model for café culture, is expected to be a significant catalyst in achieving this goal.
Strengthening Local Value Chain, Empowering Farmers
The partnership with Dormans Coffee is central to The Coffee Club’s strategy. Dormans, East Africa’s premier coffee roaster since 1950, will roast The Coffee Club’s signature blends locally in Nairobi, ensuring freshness while simultaneously strengthening Kenya’s internal roasting and supply chains. This collaboration is a powerful boost for the “farm-to-cup” journey within Kenya.
For Kenya’s coffee farmers, who have long grappled with the volatility of global coffee prices and declining production (which fell from a peak of 128,926 metric tonnes in 1987/88 to around 48,700 metric tonnes in 2023), increased local demand offers a vital buffer.
A thriving domestic market can provide stability, ensure consistent off-take, and incentivise greater value addition at various stages of the supply chain.
This aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA), which champions value addition, market development, sustainability, and youth employment.
Moreover, the focus on local sourcing and processing means;
Enhanced Value Addition
More of Kenya’s coffee will be roasted and prepared for consumption within the country, creating additional jobs in processing, logistics, and the burgeoning café sector.
Job Creation
The Coffee Club’s expansion plans, with 30 new branches, translate directly into significant employment opportunities across East Africa, from baristas and managers to supply chain personnel.
Reduced Export Dependence
While exports remain crucial, a stronger domestic market reduces over-reliance on international markets, offering greater resilience against external shocks.
The Agriculture and Food Authority Director General, Dr. Bruno Linyiru, lauded the launch as a celebration of Kenya’s rich coffee heritage, blending its agricultural roots with a vibrant urban social scene.
He noted that the initiative highlights coffee as a source of national pride and economic stability.
With government initiatives aiming to boost production back to 60,000-70,000 metric tons by 2027 through measures like distributing free coffee seedlings and direct sales avenues for farmers, the entry of major players like The Coffee Club provides the crucial demand-side impetus needed to rejuvenate the sector.
The investment by The Coffee Club is not just about new cafés; it represents a strategic alignment with Kenya’s national aspirations for its coffee industry, fostering local consumption, bolstering the value chain, and ultimately empowering the thousands of smallholder farmers who are the backbone of Kenya’s world-renowned coffee heritage.