Catherine Mahugu recognized the struggle of Kenyan coffee farmers facing unpredictable sales and frequent price fluctuations in the market. As middlemen took significant cuts, the hard-earned profits rarely returned to the farmers, leaving them at the bottom of the chain and fighting for survival. This exploitation has contributed to a steady decline in Kenya’s coffee production, which has fallen by 70% since the 1987/88 crop year.
The artisan industry faces similar challenges. Skilled craftspeople put their passion and expertise into creating handmade jewelry, bags, and clothing yet often struggle with limited access to markets. The influx of secondhand imports from the West further complicates matters, making it nearly impossible for local designers to compete.
Determined not to let talented artisans and hardworking farmers be exploited, Catherine Mahugu founded two impactful businesses—Soko and Chiswara—to address these issues head-on.
From tech to ethical entrepreneurship
Mahugu has a computer science background and a human-centred design certification from Stanford University. She could have pursued a high-paying tech career but wanted to make an impact instead.
Her first start-up, Soko, co-founded with Ella Peinovich and Gwendolyn Floyd, was established to help struggling Kenyan artisans find buyers and sell beyond their local markets. Soko is an ethical fashion brand and e-commerce platform that connects artisans directly with global consumers.
The platform uses technology to cut out middlemen, ensuring artisans receive a larger share of the revenue from their handcrafted products. This business model allows artisans to retain 25-35% of the revenue from the final sales of their products, compared to the 2-3% industry standard. The average artisan working with Soko can boost their income five-fold within months of joining the platform. Currently, Soko works with a network of over 2,500 craftspeople, providing them with dignified and sustainable work opportunities.
Giving coffee farmers a fair share of industry wealth
Kenya is famous for its coffee, yet many farmers barely make enough money from it as middlemen in the supply chain leave farmers with a small fraction of the final retail price. However, Catherine Mahugu saw this problem and reinvented the system. She was inspired by Alibaba’s Rural Taobao initiative in China and wanted to use technology to create the same impact in Kenya.
Thus, in 2018, she launched Chiswara, a tech-enabled specialty coffee company designed to cut out the middlemen and connect farmers directly with global consumers. Chiswara’s platform offers single-origin specialty coffee that is ethically sourced directly from Kenyan farmers. Farmers are paid above-market rates, and the transparent supply chain guarantees the consumers know exactly where their coffee comes from.
Chiswara has partnered with Alibaba, UNCTAD, and the International Finance Corporation (IFC) to scale its operations. As a result, Kenyan coffee is now recognized worldwide for its quality, allowing farmers to earn a decent living from their labor. Additionally, Catherine Mahugu empowers African artisans to sell their products to a global audience.
