Kenyan coffee farmers have reason to celebrate after the latest auction at the Nairobi Coffee Exchange (NCE) yielded an impressive Ksh 718 million in earnings. The auction, which followed a three-week recess, saw a robust trading volume with 19,478 bags of coffee being sold at an average price of Ksh 31,070 per 50-kilogram bag. This auction underscores the enduring strength of Kenya’s coffee industry and its capacity to attract substantial international interest.
The auction revealed a pronounced demand for high-quality coffee, with prices reaching as high as Ksh 50,764 per bag for the esteemed grade AA. This premium grade was particularly sought after, with coffee from the Kimathi, Kiairia, Mihuti, and Gatomboya factories commanding the highest prices. Kimathi factory emerged as the top performer, achieving Ksh 50,764 for each of its 33 bags of grade AA coffee. This was closely followed by Kiairia, where the coffee fetched Ksh 50,634 per bag. Mihuti’s coffee was sold at Ksh 50,375 per bag, while Gatomboya’s coffee was priced at Ksh 48,044 per bag.
In addition, the Kathinthiuku factory, marketed by New KPCU, saw its 109 bags of grade AA coffee sell at Ksh 49,857 each. The auction illustrated a clear preference for grade AA coffee, which represented 28.9% of the total traded volume. Specifically, 4,710 bags of this grade were brought to market, while grade AB coffee comprised 39.15% of the total volume with 7,487 bags traded.
NCE Chief Executive Officer Lisper Ndung’u commented on the success of the auction, emphasizing the critical role of quality in fetching higher prices. “High-quality coffee attracts more buyers and usually commands better prices,” Ndung’u noted. She encouraged farmers to focus on producing both quality and quantity to attract a broad spectrum of international buyers, thus securing competitive prices. Ndung’u also highlighted the broad participation in the auction, which included eight coffee agents and 20 local and international buyers.
Among the key agents in the auction, New KPCU and Alliance Berries Limited played prominent roles. New KPCU presented 7,053 bags, while Alliance Berries Limited offered 6,486 bags. In terms of buyers, Ibero Kenya emerged as a leading purchaser, buying 6,391 bags of coffee for Ksh 216 million. C-Dorman was another major buyer, acquiring 2,861 bags for Ksh 123.6 million. Other notable buyers included Sasini, which purchased 2,552 bags for Ksh 11.3 million, and Taylor Winch, which acquired 1,738 bags for Ksh 65.6 million.
This auction’s results not only highlight the high demand for Kenyan coffee but also reflect a growing recognition of the value of quality in the global coffee market. The ability of Kenyan coffee to command premium prices is a testament to the skill and dedication of the country’s coffee producers. As the industry moves forward, maintaining high standards and expanding market reach will be crucial for sustaining growth and enhancing the economic benefits for Kenyan farmers.
The Ksh 718 million earned from this auction represents a significant milestone for Kenya’s coffee sector. It demonstrates the sector’s resilience and capacity to thrive amidst global competition. The continued focus on producing top-quality coffee and engaging with international buyers will be essential in leveraging this success and further establishing Kenya as a leading player in the global coffee market.
