The document discusses a stakeholder analysis of the Kenyan coffee sector that was conducted to understand how climate change is impacting the sector. [1] The analysis found that decreasing coffee quality and yields have led to decreasing margins for those in the coffee chain. [2] It identified numerous causes of these issues, including outdated farming techniques, lack of knowledge, and effects of climate change. [3] The analysis suggests three areas for improvement: organizing extension structures to educate farmers, establishing sound sector regulation, and preventing corruption throughout the chain.

1. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Sangana PPP
Stakeholder Analysis in the
Kenyan Coffee Sector
Embu, Kenya – 12 May 2010
Henk van Rikxoort
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2. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Agenda
1. Why a stakeholder analysis?
2. Approach
3. The sector in brief
4. Sector output
5. Stakeholders speaking
6. Cause & effect
7. Focus points for improvement
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3. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
1. Why a stakeholder analysis?
 To understand the dynamics of the project environment
 Stakeholder profiling: identifying the attitudes of relevant actors
towards the project
 To be able to anticipate on the actions of other stakeholders apart
form project partners
 Basis for strategic decisions
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4. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
2. Approach
 Literature study
 Interviews with key stakeholders
 Stakeholder mapping
 Power – potential mapping (Capacity WORKS)
 Stakeholder relationship mapping (Capacity WORKS)
 Cause & effect diagrams
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5. ENABLING ENVRIONMENT Ministry of Co-operativeAdaptation
Climate Change Development and Mitigation in the Kenyan Coffee Sector
Ministry of Agriculture
Kenya
Kenya Coffee Coffee
National
Growers Board of
Federation of
Association Kenya
Co-operatives
Kenya Coffee
Farmer Kenya Coffee Eastern African
Co-operative Producers &
Training Traders Fine Coffees
Unions (30) Traders
Centers (30) Association Association
Association
Co-operative
Smallholders
Societies
(700.000)
(430) Nairobi
Exporters Offshore
VALUE CHAIN
Coffee
(32) Buyers
Exchange
Small Estates
Marketing
<15ha Millers (8)
Agents (8)
(2500)
Local
Second
Roasters
Window
Estates (4)
>15-20ha
(329)
SERVICES
Co-operative
Coffee
Bank of Kenya Input Transport
Research Warehousing
(among Suppliers services
Foundation
others)

6. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
4. Sector output
PARAMETER: FIGURE: SOURCE:
Export volume: 2.1 million bags (1987) ICO (2008)
0.9 million bags (2007)
World market share: 3.1% (1986) ICO (2008)
0.6% (2008)
Yields/hectare: 892kg/ha (1980) FAO (2008)
284kg/ha (2008)
698kg/ha (Arabica worldwide) FAO (2008)
995kg/ha (Ethiopia)
1160kg/ha (Rwanda)
Premium grades: 20% (1993) Condliffe, K (2008)
10% (2003)
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7. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Smallholder farmers say:
“We get a low price for our “Changing weather
cherries” patterns impacts our
“The costs of our inputs are rising” production”
“We have poor access to credit”
“Some of our colleagues quit coffee
farming”
“There is a lack of transparency in
the operations of the co-operatives”
“The youth “We have no access to any kind of
“The quality of our moves away information”
cherries is decreased from coffee “The payments for our cherries are
during processing” production” delayed”
“We lack knowledge on “There is corruption in various
up to date farming forms”
techniques”
Political Economical Social Technological Environmental
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8. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Co-operative societies say:
“High interests are
reducing our payments to
farmers”
“Politics are influencing the way to manage a co-
“It is difficult for us to get
operative”
funds”
“Farmers are keen on power”
“Farmers are spreading false rumors about the
management board”
“There is a gap between coffee growers and buyers”
“Marketing agents bribe our farmers in order to get
“A change in climate is
business”
impacting the production”
“The MoA, MoCD and the CBK are supporting
“We now have sometimes
themselves instead of farmers”
rains during the drying
period of the parchment”
Political Economical Social Technological Environmental
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9. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Estates say:
“Climate change impacts are affecting both
the quality and yields of our produce”
Millers say:
“The marketing agents are influencing co-operatives
in their choice for a miller” “The coffee
“The relation between co-operatives and marketing production is
agents is very vulnerable” declining”
“The milling contracts between the co-operatives
and us are therefore changing all the time”
“There is corruption involved”
Political Economical Social Technological Environmental
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10. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Marketing agents say:
“We see estates
disappearing”
“Smallholders are
quitting coffee “The lack of loyalty from co-operatives makes our work
farming” difficult”
“Due to the quick turnover of the co-operative
management board we sometimes have to start from
scratch”
“Regardless how we perform, we can always be kicked out”
“Other marketing agents adopt unorthodox methods to get
new business”
“The climate is “We work in an uneven playing ground, we lack proper
changing and coffee rules of the game”
is a vulnerable crop “The CBK is failing and not independent”
to climate” “The MoA, MoCD and the CRF do not provide agricultural
extension”
Political Economical Social Technological Environmental
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11. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Exporters say:
“Things would be much
better if there was more
coffee available for trade”
(Local exporters): “Marketing agents are very
powerful”
“We are suspected “The sector is working very inefficient”
of price agreements “It is made impossible for us to vertically integrate”
and cartel forming” “There is corruption everywhere”
“We are excluded in “We have to deal with a very poor government
multi-stakeholder performance”
dialogues” “We pay high taxes to keep all those governmental
bodies running”
“A fully liberalised sector would work better for
“Coffee is increasingly everyone”
traded trough illegal
routes”
Political Economical Social Technological Environmental
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12. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
The KCPTA says:
“The relation between co-operatives
and marketing agents is vulnerable
and short lasting”
“The CBK is dominant and dictating
what we have to do” “Input financing by marketing
agents causes tensions
between them and financial
institutions”
“Illegal trading of coffee is
“The coffee production of happening”
Kenya is declining” “Hijacked coffee transports
are reported”
Political Economical Social Technological Environmental
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13. Climate Change Adaptation and Mitigation in production
6. Cause & effect – Coffee the Kenyan Coffee Sector
Decreasing
margins for
chain actors
Decreasing Decreasing volumes
coffee of coffee available
quality in the chain
Decreasing (Young) Increasing
coffee farmers volumes of
yields quit coffee traded
coffee through
farming illegal routes.
Pests & Currently 5 –
diseases, soil 8%
Less Moderate erosion,
incentives processing leaching, etc.
to performance Coffee is
farmers at wet mills hardly
Wrongly Outdated
to invest Farming profitable
timed farming
in quality systems for
fertilisation techniques
vulnerable farmers
and crop
to climate
protection Lack of change
knowledge
Payments Lack of Poor access Delayed Erratic Increasing
Low Farmers
to knowledge to credit payments to rainfall temperatures
coffee selling at
farmers farmers patterns hawkers
Dated Lack of price
according
overall machinery knowledge
Complex and Rising Hijacked
wet mill Untrained No slow payment Untrained Climate Untrained costs of coffee
quality 13
staff collateral systems farmers change farmers inputs transports

14. Climate Change Adaptation and Mitigation ingovernance
6. Cause & effect – Sector the Kenyan Coffee Sector
Decreasing
margins for
chain actors
Corruption and The “benefit Highly cost Extra cost for the
withholding money reaping” stage inefficient and private sector on
throughout the of the complex sector top of the taxes
chain (with farmers collaboration structure, no “rules
at the end of the is not reached of the game” Private sector takes
payment chain) over extension
Vulnerable and
Sector systems short lasting Government fails in CRF unable to Insufficient
and processes relations between setting sound sector extent science to and outdated
are vulnerable co-operatives and regulation and farmers government
to corruption marketing agents regulation extension
enforcement
Unorthodox Lack of loyalty
marketing towards Budget cut CRF: 50% Outdated
agents marketing staff cut CRF: 70% knowledge
agents government
Complex, Biased policy Outdated No personnel
bureaucratic design governance government
and in- Short term or systems subsidies Demand
transparant no vision of after driven
chain co-operatives liberalisation extension
Government Outdated
Farmers personnel knowledge Budget Drastically
have rarely Poor with own government CRF decreased Understaffed
insight in the organisational interest in personnel based on coffee governmental
breakdown No “rules of capacity of the coffee 2% export exports extension
of payments the game” co-operatives sector tax offices

15. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
7. Focus points for improvement
 Organisation of extension structures
 Sound sector regulation
 Corruption prevention
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16. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Contacts
gtz gtz
Henk van Rikxoort Kerstin Linne
Sangana PPP Intern Project Coordinator
P.O. Box 41607-00100 Postfach 5180
Nairobi, Kenya 65726 Eschborn
Germany
P (Kenya) +254723354294
P (Europe) +31618187108 P +496196793004
M henk.vanrikxoort@wur.nl M kerstin.linne@gtz.de
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