In order to meet its obligations to the International Coffee Agreement, Kenya regulated output from 1964–1972 and 1981–1985 by banning the planting of new coffee trees. With the use of a large dynamic computable general equilibrium model, we attempt to show that Kenya suffered significant income losses due to the inefficiency of its internal quota system. More importantly, as coffee has been the most lucrative crop in Kenya over the last 30 years, the restriction of coffee expansion resulted in very large distributional effects. The use of a coffee tax coupled with an increased expansion of coffee hectarage in the quota years would likely have significantly reduced the incidence of poverty in Kenya by redistributing income towards farmers in coffee zones who historically did not grow coffee, farmers in non-coffee zones, and landless rural labourers.