The Kerugoya High Court has suspended the government’s implementation of the Direct Settlement System (DSS) for paying coffee farmers, citing inadequate public participation. The suspension will remain in effect until May 20, 2026.

Justice Edward Muriithi, ruling on a petition challenging the Capital Markets (Coffee Exchange) (Fees) Regulations 2024, noted that 15 coffee-growing counties were not engaged in the public participation process.

Farmers argued that the government introduced the DSS without proper stakeholder consultations or parliamentary approval. They also raised concerns that direct mobile payments of small amounts could encourage impulsive spending, undermining their ability to save for major expenses such as school fees.

“The appointment of the commercial bank was against the law, public participation was violated, and the National Assembly did not facilitate public participation at this stage,” the court observed.

Following the ruling, coffee farmers from several unions, led by National Coffee Cooperative Union chair Felix Muriithi, vice chair Muriithi Maina, and Kirinyaga Slopes Union chair Geoffrey Munyagia, took to the streets of Kerugoya to celebrate the decision. Kirinyaga Central MP Gachoki Gitari also welcomed the judgment, saying due process had not been followed.

Justice Muriithi directed the government to report back within six months on whether it has conducted proper public participation or abandoned the DSS plan altogether. He further suspended the 2024 Coffee Exchange Fees Regulations pending the conclusion of the participation process.

The case will be mentioned on May 20, 2026, for further directions.