Kenya's coffee industry is racing against time to comply with the European Union Deforestation-Free Regulation (EUDR), a stringent new trade requirement that could lock smallholder farmers out of one of their most lucrative markets if unmet by January 1, 2026.

With over 55 per cent of Kenya's coffee exports destined for the European Union, failure to align with these new standards could trigger a market crisis with wide-reaching economic consequences.  The EUDR mandates that all agricultural products entering the EU-including coffee-must be traceable to land that has not been deforested after December 31, 2020.

The regulation applies to seven key commodities-coffee, cacao, cattle, soy, timber, palm oil, and rubber-and seeks to reduce global deforestation driven by international trade.  "This is not just a Kenyan issue," said Program Manager at the Global Coffee Platform George Watene. "Countries across the globe are feeling the pressure.

But for Kenya, where smallholder farmers dominate the coffee sector, the compliance challenge is particularly acute."  "This is a regulatory shock," said Senior Manager for Technology Integration at the Alliance of Bioversity International and CIAT Brian King. "Just like a drought or pest outbreak, the EUDR is one more shock that farmers must now learn to navigate.