New EU laws brew trouble for Kenya's smallholder coffee farmers

Kenya's coffee industry is racing against time to comply with the European Union Deforestation-Free Regulation (EUDR), a stringent new trade requirement that could lock smallholder farmers out of one of their most lucrative markets if unmet by January 1, 2026.

With over 55 per cent of Kenya’s coffee exports destined for the European Union, failure to align with these new standards could trigger a market crisis with wide-reaching economic consequences. 

The EUDR mandates that all agricultural products entering the EU—including coffee—must be traceable to land that has not been deforested after December 31, 2020.

The regulation applies to seven key commodities—coffee, cacao, cattle, soy, timber, palm oil, and rubber—and seeks to reduce global deforestation driven by international trade. 

“This is not just a Kenyan issue,” said Program Manager at the Global Coffee Platform George Watene.

“Countries across the globe are feeling the pressure. But for Kenya, where smallholder farmers dominate the coffee sector, the compliance challenge is particularly acute.” 

“This is a regulatory shock,” said Senior Manager for Technology Integration at the Alliance of Bioversity International and CIAT Brian King.

“Just like a drought or pest outbreak, the EUDR is one more shock that farmers must now learn to navigate. And our job is to ensure that their livelihoods do not suffer as a result.” 

According to King, the Alliance is working with both government and non-state actors to mitigate unintended consequences of the regulation and avoid the exclusion of smallholder farmers from the EU market.

He emphasised the importance of a unified response, stating, “This statement we’re working on—endorsed by 30 organizations—signals a convergence of public, private, and nonprofit efforts to provide both technological and policy solutions to the EUDR challenge.” 

A major requirement of EUDR is geolocation data to prove that coffee is not grown on recently deforested land.

While this might be straightforward in plantation-style systems, it is a logistical and financial hurdle in Kenya, where coffee is grown on hundreds of thousands of small, scattered plots. 

“The burden of geo-mapping is heavy,” said Sarah Nyaga, a smallholder farmer in Embu County.

“It’s not just about owning a smartphone—it’s understanding how to use it, accurately recording your farm’s location, and knowing who controls your data.” 

These challenges are amplified by low digital literacy, concerns over data privacy, and the cost of compliance tools—barriers that cooperatives and government agencies are trying to overcome. 

Recognising the threat to coffee exports, the Kenyan government has mobilised a multi-agency task force to coordinate compliance efforts.

Director at the Agriculture and Food Authority (AFA) Coffee Directorate Felix Mutuiri emphasised that government-led communication and coordination are critical. 

“We can't let 55 per cent of our coffee exports hang in the balance,” he said.

“Kenya is already on track in terms of compliance. What’s missing is a harmonised, data-driven approach that proves it.” 

Mutuiri confirmed that an official government strategy on EUDR implementation is underway and will soon be communicated formally. 

Cooperatives are central to Kenya’s coffee supply chain and are being identified as the primary channel for implementing compliance. According to King, “Smallholder farmers can’t do this alone. We must ensure cooperatives are equipped with the tools and knowledge to guide their members.” 

Capacity-building efforts are beginning to take shape, including training sessions in counties like Nandi and Embu to teach farmers and cooperative leaders how to collect and manage geolocation data.

As of May 2025, AFA estimates that 30 per cent of coffee farms had been mapped. 

The consequences of inaction are dire. If Kenyan coffee entering the EU in 2026 lacks proper traceability, it risks being rejected, leading to significant income loss for farmers and foreign exchange shortfalls for the country. 

“We’re not just talking about coffee,” Nyaga cautioned. “We’re talking about livelihoods. If farmers drop out of the coffee sector due to this, the entire value chain—from exporters to government—will be affected.” 

All stakeholders agree on one point: time is running out. The EU is unlikely to extend the deadline, so Kenya’s response must be swift and coordinated. 

“There’s still a lot of confusion among farmers,” said King. “We need to step up awareness campaigns, simplify the messaging, and reach farmers in their own language and context.” 

The silver lining is that Kenya is not starting from zero. Systems for traceability already exist thanks to previous regulations, and there is political and institutional will to adapt. The challenge now is speed and synergy. 

“This is the moment,” said Global Coffee Platform's Watene.

“The coffee being harvested today will hit EU shelves next year. If we act now, we can protect our farmers, our market, and our reputation.”

Originally set to begin for large companies on December 30, 2025, and small enterprises by June 30, 2026, the deadlines offer a brief respite for compliance preparation. Notably, Kenya has been classified as a low-risk country under the new system, offering a modest reprieve for exporters. 

Despite this, smallholder farmers face mounting pressure. Recent analysis underscores that inadequate mapping, weak land-tenure clarity, and limited capacity risk exclusion, even after the delayed start date.

The industry consensus sees the EUDR as a regulatory shock—akin to a natural disaster—that could seriously undermine livelihoods without prompt action. 

To bridge that gap, the International Trade Centre and the Alliance of Bioversity International have rolled out public tools designed to support smallholder farmers.

These include mobile mapping apps and traceability platforms, aiming to make compliance affordable and accessible even for farmers in remote areas. 

Technological innovations also offer practical compliance pathways. For example, the TerraTrac app has been adopted by cooperatives servicing thousands of small plots.

Training programs are in place to ensure accurate GPS collection and integration into national traceability systems. 

Meanwhile, stakeholders are pushing for greater collaboration. A multi-stakeholder statement involving 30 organisations calls for public, private, and nonprofit actors to unify around scalable solutions to ensure farmers are not excluded from the EU market. 

The Kenyan government has mobilised a multi-agency task force, working closely with cooperatives to scale up mapping and support education campaigns across coffee-growing regions.

The Agriculture and Food Authority (AFA) has promised to issue official guidance and support mechanisms to help smallholders meet the requirements in time. 

Stakeholders agree: the EUDR is not just a policy hurdle but a major opportunity to streamline sustainability in Kenya’s coffee sector.

Time remains short—but with unity, investment, and rapid rollout of support tools, Kenya can rise to the challenge and protect its place in the global coffee market.