Australian coffee chain to invest Sh1.3b as it enters Kenya

Australian café chain, Coffee Club, has announced a $10 million (Sh1.3 billion) investment to expand into the  Kenyan market and the region, its first foray into the continent.

As part of its growth strategy, the restaurant chain plans to open 30 branches across East Africa, banking on Kenya’s rich coffee heritage.

Speaking at the launch event, Trade and Investment Cabinet Secretary Lee Kinyanjui, noted that although Kenya produces some of the world’s finest coffee, most of it has historically been exported, with local consumption remaining relatively low.

However, new figures shared by the Agriculture and Food Authority reveal that local coffee consumption grew by 33.9 per cent, rising from 1,464 metric tonnes in 2023 to 1,961 metric tonnes in 2024.

This represents about 4.17 per cent of the nation’s total production  still modest, but up from just under five per cent only a few years ago.

The government now aims to grow domestic consumption to 20 per cent of national production within the next five years.

“The easiest way to stabilise prices for our farmers is to increase local demand,” said Kinyanjui, emphasising the push to get more Kenyans  especially youth to drink their own coffee.

The Coffee Club plans to open at least 10 outlets across Kenya in the next five years, with strategic partnerships to source beans locally through Dormans Coffee, further boosting local roasting and supply chains. 

Industry players hope that a thriving local coffee culture will shield farmers from the volatility of global coffee prices and strengthen Kenya’s coffee value chain through value addition and job creation.