Described as an "excellent project, showcasing how technology and innovation can create tangible, positive social impact" by judges, the Co-operative Bank of Kenya has been named as the winner of the IMPACT Awards' 'Innovation/invention of the year' for its Coffee Direct Settlement System (DSS).
Launched in 2023, the system provides a digital platform enabling the automation of coffee trading from farm to auction. An automated settlement platform, DSS facilitates direct trade and settlement of coffee proceeds, eliminating the need for intermediaries and promoting greater transparency and accountability. The platform supports payouts in US dollars allowing farmers to maximise earnings. In addition, real-time data analytics allows farmers and other key players within the value chain to make informed decisions, optimise production and enhance cashflow management.
In its submission, Co-operative Bank of Kenya said the platform has helped to reduce payment turnaround for farmers from two months to five days, leading to improved financial stability for nearly a million farmers. As of June 2024, over 650,000 bags of coffee worth $171 million have been traded and settled.
The initiative was praised by judges for its capacity for scale in other coffee-producing regions and potential wider roll out to other crops – such as rice, cotton and potatoes – and its ability to empower small holder farmers. In addition, judges highlighted strong impact KPIs compared with other initiatives and projects, as well as the initiative's financial literacy and technical assistance for farmers.
"Co-operative Bank of Kenya was founded in the 1960s by a team of visionary leaders in Kenya's co-operative movement that was just emerging. It has stayed true to its objective of financial inclusivity, growing to become a leading financial institution in eastern Africa and also the most successful co-operative bank in Africa," said Gideon Muriuki, group managing director & CEO.
"We continue being fully engaged in the communities we do business, to make financial services accessible, empowering both individuals and communities."
