Anyone who wants to buy Kenyan coffee at the exchange and ship it abroad needs a coffee buyer’s licence. Since 27 March 2026, that licence has been issued by the Coffee Board of Kenya under the Coffee Act (No. 8 of 2026), not by the Agriculture and Food Authority (AFA). The Act also adds export-specific permits, new restrictions on what a buyer’s group may do, and quarterly reporting duties. This article sets out who needs a buyer’s licence, how to apply, what the licence does and does not allow, and the documents needed to get a consignment out of the country.
Who needs a coffee buyer’s licence
Section 2 of the Coffee Act defines a buyer as a person or entity licensed by the Board to buy clean coffee at an exchange from a co-operative society, registered grower, coffee union, grower-miller or coffee estate for export, local sale or value addition, or to import clean coffee for secondary processing in Kenya. Export is therefore one of the core purposes of the licence, and the licence is the gateway to buying at the Nairobi Coffee Exchange auction: section 73(1) lists a buyer licensed by the relevant licensing authority among those who may trade at an exchange.
The Second Schedule to the Act confirms that the coffee buyer’s licence is issued by the Board. Operating as a coffee buyer without it is an offence under section 30, punishable by a fine of up to KES 5 million, imprisonment of up to three years, or both. Directors and officers can be personally liable under section 97(2).
There is one narrow exception for trade samples. Under section 80(4), clean coffee consisting only of a sample or a parcel of up to 20 kilograms that meets the relevant licensing and certification requirements does not require a buyer’s licence.
Applying to the Coffee Board
Section 28 sets the procedure. The applicant submits to the Board an application in the prescribed form, with the prescribed information and fees. The Board must consider the application within the period set by its licensing legislation, which may not exceed fourteen days, and may grant it subject to conditions or refuse it. If it refuses, it must give reasons.
The forms, supporting documents and fees are matters for regulations under section 99. Before filing, confirm with the Board which form and fee schedule it currently applies, because the transition from AFA’s regime under the Crops (Coffee) (General) Regulations, 2019 is recent. If an application was already pending with AFA on 27 March 2026, see our separate note on pending AFA coffee licence applications under the new Act.
A buyer’s licence, like every licence under the Act, is not transferable (section 28(4)). It expires on 30 June each year, and a renewal application is due by 1 June, with late applications permitted on payment of a late fee (section 35). Because the licence cannot be transferred, a buyer’s business sold as a going concern does not carry its licence across to the purchaser, and deal structures should be planned around that rule.
What the licence does not allow
The Act limits a buyer’s activities in two ways that commonly catch new entrants.
First, section 28(5) provides that the holder of a coffee buyer’s licence, or an entity associated with it, shall not carry on the business of a commercial miller, broker, roaster, agent or warehouse operator. Section 28(7) applies the mirror rule to commercial millers. A group that wants to mill, warehouse and export coffee cannot do all three through related companies without addressing these provisions. The Act does not define “associated”, so common ownership, shared directors and control arrangements all need careful review. A licensing authority may not issue a licence whose effect would breach these rules (section 28(8)), and a licence held in breach can be cancelled for non-compliance with the licensing legislation (section 36).
Second, section 28(6) states that a buyer’s licence shall not be construed as authorising a person to engage in direct sale of coffee. Under section 2, a direct sale is a contract between a registered grower, co-operative, union, grower-miller or estate and an overseas buyer for the sale of its own clean coffee. The direct sales channel is a grower’s channel, not a licensed buyer’s.
Getting a consignment out of Kenya
Section 80(1) provides that a person shall not export coffee unless that person has obtained a phytosanitary certificate from the Kenya Plant Health Inspectorate Service (KEPHIS), together with notification and registration of any direct sales contract, a certificate of origin, a certificate of quality and any other relevant approvals issued by the Board. The Second Schedule adds the clean coffee movement permit for exports, issued by the Board. Build the timeline for each consignment around obtaining all of it before the shipping date.
A buyer that also wants to trade on international coffee markets can apply for a coffee trading licence, which the Board may issue to a grower or a buyer for trading in the international coffee market and auction (section 79). Blending also carries a disclosure rule: under section 81, anyone who blends Kenyan coffee with coffee produced elsewhere must declare the percentage of Kenyan coffee in the blend, on pain of a fine of up to twice the value of the blended coffee, imprisonment of up to one year, or both.
Finally, section 87 empowers the Cabinet Secretary, in consultation with the Board and county governments and by notice in the Gazette, to impose a Coffee Development and Marketing Levy of 2.5% of the export and import value, remitted by coffee buyers to the Board through the direct settlement system. Before pricing an export contract, check whether that notice has been published and from what date it applies.
Ongoing obligations
A licence holder must act in the best interest of coffee growers and adhere to the prescribed licensing conditions and its contractual obligations (section 31). It must also submit quarterly returns to the Board in the prescribed form (section 32). Founders managing a buyer from outside Kenya should read our note on running a coffee export business from abroad. The Board may cancel a licence if the holder fails to meet a licence condition, fails to comply with the licensing legislation, or surrenders it (section 36).
A buyer dissatisfied with a decision not to issue, or to revoke or cancel, its licence may apply to the Board’s Dispute Resolution Committee under section 38. Under section 92 the committee must decide within thirty days of hearing the dispute, and a party dissatisfied with its decision may appeal to the High Court.
How We Can Help
Clay & Associates Advocates advises exporters, trading houses and investors on coffee buyer’s licence applications to the Coffee Board of Kenya, on structuring groups around the section 28 restrictions, and on export contracts. Our legal guide to coffee processing and export in Kenya covers the wider sector, and our article on coffee broker licensing explains the separate CMA regime. Contact our Regulatory & Compliance team to plan your application.
Sources: Coffee Act (No. 8 of 2026), Kenya Law, sections 2, 28, 30, 31, 32, 35, 36, 38, 73, 79, 80, 81, 87, 92, 97, 99 and Second Schedule.
Frequently asked questions
Who issues the coffee buyer’s licence in Kenya?
The Coffee Board of Kenya, under the Coffee Act (No. 8 of 2026) and its Second Schedule. Before 27 March 2026 the licence was issued by AFA’s Coffee Directorate.
Can a licensed coffee buyer also own a mill or warehouse?
Not directly. Section 28(5) bars a buyer and any associated entity from carrying on business as a commercial miller, broker, roaster, agent or warehouse operator.
Can a licensed buyer sell coffee through a direct sale?
No. Section 28(6) states that a buyer’s licence does not authorise direct sale of coffee. Direct sales are contracts made by growers, co-operatives, unions, grower-millers or estates with overseas buyers for their own coffee.
Do I need a buyer’s licence to send coffee samples abroad?
Not for samples or parcels of up to 20 kilograms that meet the relevant licensing and certification requirements (section 80(4)). Commercial quantities need the licence.
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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.



