The livelihood of small-scale coffee farmers in Hai and Arumeru Districts depends on coffee among other economic activities. This study analysed influence of livelihood capabilities on coffee production among small-scale coffee farmers in Hai and Arumeru Districts. Specifically, the study intended to: examine the implications of livelihood capabilities on coffee production trends; assess the implications of livelihood capabilities on coffee farming inputs; determine the association between livelihood capabilities and access to extension services, and determine the livelihood capabilities diversification strategies among small-scale coffee farmers. A cross-sectional research design using a mixed methods approach was applied in this study to collect qualitative and quantitative data from 250 respondents using households’ survey, key informant interview-(KII), focus group discussion-(FGDs) and documentary review. Qualitative data were analysed using content analysis while quantitative data were analysed using trend analysis, chi-square and cross-tabulation. The results indicate that the small-scale coffee farmers were categorized into four capability levels; no capability (9.2%), low capability (39.2%), moderate capability (18.4%) and high capability (33.2%) respectively. Coffee production and income generated from coffee have been fluctuating from time to time and therefore affecting the livelihood of small-scale farmers. It was revealed that the critical problem facing a small-scale coffee farmer was inputs un-affordability. Generally, lack of market and low coffee price, inadequate farming inputs and extension services have compelled small-scale coffee farmers to diversify their economic activities. Further, the study concludes that there is a critical shortage of coffee farming inputs and extension services among small-scale farmers which to a large extent has resulted into low coffee production. There is a need of small-scale coffee farmers to form groups in order to lay down strategies on how to improve coffee production and how to secure market. However, districts administrative authorities and AMCOS should collaborate to improve the quality and quantity of coffee produced. This can be done by ensuring the timely availability of coffee farming inputs and extension services among small-scale farmers. In so doing, this will improve not only coffee production but also the livelihood capabilities among smallscale farmers.Higher Education Students’ Loans Board (HESLB)