The Coffee Act (No. 8 of 2026) backs its licensing regime with criminal offences, and several carry fines in the millions of shillings or prison terms of up to five years. Directors and officers can be personally liable for offences committed by their companies. This article sets out every offence in the Act that applies to coffee businesses, the maximum penalty for each, how the general penalty fills the gaps, and the regulatory consequences that sit alongside prosecution.
Offences and maximum penalties
The table below lists the offences we have identified in the Act that apply to licence holders, applicants and others dealing in coffee. All penalties are maximums, and in each case the court may impose a fine, imprisonment or both.
| Section | Conduct | Maximum penalty |
|---|---|---|
| 28(9) | Performing a function for which a licence or permit is required without applying to the licensing authority under section 28(1) | KES 1 million or twice the value of the coffee or coffee product, whichever is greater, or 2 years |
| 30(3) | Operating as a cupping laboratory, liqueur, coffee buyer, importer, agent or warehouse operator without the Board’s licence, certificate or permit, or running an exchange or brokerage without a Capital Markets Authority licence | KES 5 million or 3 years |
| 75(3) | Contravening section 75, including a broker or agent receiving coffee sale proceeds on behalf of growers | KES 500,000 or 6 months |
| 77(6) | Operating a warehouse contrary to the Act | KES 300,000 or 6 months |
| 81(2) | Blending Kenyan coffee with coffee from elsewhere without declaring the percentage of Kenyan coffee | Twice the value of the blended coffee or 1 year |
| 84(4) | Failing to give an inspector access to premises and information | General penalty under section 97(1) |
| 94 | Failing to provide information or documents requested by the Institute’s Chief Executive Officer, or giving a statement known to be false | KES 50,000 or 3 months |
| 95(4) | An officer, staff member or agent of the Institute disclosing information acquired under the Act without the Council’s written consent, or a person who receives such information disclosing or publishing it | KES 50,000 or 6 months |
| 97(1) | Any offence under the Act for which no specific penalty is provided | KES 2 million or twice the value of the coffee or coffee products, whichever is higher, or 5 years |
The general penalty
Section 97(1) applies to any offence under the Act for which no other penalty is provided. It is the heaviest penalty in the Act: a fine of up to KES 2 million or twice the value of the coffee or coffee products, whichever is higher, imprisonment of up to five years, or both. The offence of obstructing an inspector under section 84(4) has no stated penalty, so it falls under section 97(1). Because the value-based alternative applies, the fine on a large consignment can far exceed KES 2 million.
Personal liability for directors and officers
Section 97(2) provides that where an offence under the Act is committed by a partnership, company, association or co-operative society, every director, partner or officer at the time is liable as if they had committed it themselves, if they knew or should have known of the offence and did not exercise due diligence to ensure compliance. They escape liability only by proving that the act or omission took place without their knowledge, consent or connivance and that they exercised the diligence they ought to have, having regard to their functions and all the circumstances.
The burden is on the individual, and directors based outside Kenya are held to the same standard (see our note on running a Kenyan coffee export business from abroad). Directors of coffee businesses should therefore be able to show a working compliance system: a licence register with renewal dates, sign-off procedures for new activities and contracts, and records of advice taken on difficult questions such as whether two group companies are “associated” under section 28.
Overlapping offences
Trading without a licence can fall under both section 28(9) and section 30(3). The first applies to anyone who performs a licensed function without applying for a licence, and the second to anyone who operates as one of the listed businesses without a licence. The penalties differ: section 30(3) carries a higher fixed maximum, while section 28(9) carries a value-based alternative that can be larger on a high-value consignment. The prosecution can choose which to charge, so the exposure should be assessed against the higher of the two.
The restrictions on vertical integration in sections 28(5) and (7), which stop a buyer from milling and a miller from buying, are not clearly matched by a criminal penalty, because section 28(9) refers to subsection (1). Breach is nonetheless likely to be enforced through refusal or cancellation of licences, as our article on the Coffee Act’s limits on vertical integration explains.
Regulatory consequences beyond prosecution
Criminal penalties are not the only risk. A licensing authority may cancel a licence if the holder fails to meet a condition, fails to comply with the licensing legislation, or surrenders the licence (section 36). An application may be refused, with reasons, under section 28. Under section 84, the Board and county governments appoint inspectors, who may inspect farms, nurseries, pulping stations, mills, warehouses, cupping laboratories, roasters and buyers’ vessels transporting coffee, and operators must give them access to premises and information. A decision to refuse, revoke or cancel a licence can be challenged before the licensing authority’s Dispute Resolution Committee, and then in the High Court (sections 38 and 92).
For a buyer or exporter, losing a licence mid-season can be more damaging than a fine. Licences expire on 30 June each year and renewal applications are due by 1 June (section 35), so a missed renewal can leave a business trading without a licence and exposed under sections 28(9) and 30(3).
How We Can Help
Clay & Associates Advocates advises coffee businesses and their directors on compliance with the Coffee Act, licence renewals, responses to inspections, and defending regulatory action before licensing authorities and Dispute Resolution Committees. See our map of who issues each coffee licence, and contact our Regulatory & Compliance team for a compliance review.
Sources: Coffee Act (No. 8 of 2026), Kenya Law, sections 28, 30, 35, 36, 38, 75, 77, 81, 84, 92, 94, 95 and 97.
Frequently asked questions
What is the penalty for buying coffee without a licence in Kenya?
Up to KES 5 million, three years’ imprisonment, or both, under section 30(3) of the Coffee Act. Section 28(9) may also apply, with a fine of up to KES 1 million or twice the value of the coffee.
Can directors be prosecuted for a company’s breach of the Coffee Act?
Yes. Under section 97(2), directors and officers are liable unless they prove the offence happened without their knowledge, consent or connivance and that they exercised due diligence.
What is the general penalty under the Coffee Act?
A fine of up to KES 2 million or twice the value of the coffee, whichever is higher, imprisonment of up to five years, or both, for any offence without a specific penalty (section 97(1)).
Is it an offence to refuse an inspector entry?
Yes. Failing to give an inspector access to premises and information is an offence under section 84(4), punishable under the general penalty in section 97(1).
Need advice on your own matter?
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This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
