The coffee sector in Kenya is undergoing significant reforms, reshaping the landscape at various levels. At the helm of the Nairobi Coffee Exchange (NCE) is its CEO, Lisper Ndung’u, who plays a pivotal role in steering the institution through these transformative times. As the central coffee auction in Kenya, NCE handles approximately 85% of the country’s coffee, serving as a crucial marketing channel.
Recent reforms in the coffee industry introduced changes in the regulatory framework, including the implementation of the Crops Coffee General Regulations 2019 and the Capital Markets Coffee Exchange Regulations 2020. These reforms brought about new processes and players in the value chain while rendering some traditional roles obsolete. Notably, marketing agents were replaced by coffee brokers licensed by the Capital Markets Authority (CMA), acting as grower representatives. A direct settlement system (DSS) was also introduced, streamlining payments to growers via a licensed commercial bank. Licensing responsibilities were redistributed among various authorities, ensuring a more structured and transparent industry.
Adjusting to these changes posed initial challenges for the NCE, as the organization adapted to new expectations and roles. Over time, however, the exchange embraced its responsibilities, with support from stakeholders and regulators. A notable shift has been the increased interaction with coffee growers, fostering direct communication and addressing their queries. The NCE also undertook outreach initiatives to educate growers about the DSS and its operations, strengthening their understanding of the auction process.
Transparency in the coffee trade has been a priority for the NCE. The decision to stream live coffee auctions on YouTube has bridged the information gap, enabling growers and stakeholders to witness the price discovery process in real-time. This initiative has demystified the auction process, showcasing it as an automated bidding system driven by demand, supply, and quality. The NCE has also expanded its dissemination of auction reports, reaching a broader audience through digital platforms.
Despite misconceptions, the NCE clarifies that coffee prices are influenced by external factors such as global demand and supply, international prices, and foreign exchange rates, rather than by the exchange itself. Quality and seasonal production patterns also play significant roles in price determination.
The DSS has been a transformative addition, enhancing service delivery and providing insights into value distribution within the industry. This system not only benefits growers but also informs decision-making at local and national levels. While the transition to the new regulatory framework presented challenges, including stakeholder alignment and problem-solving delays, the NCE has received substantial support from regulatory bodies and the government.
As a young woman in a leadership role, the CEO acknowledges overcoming gender and age-related biases. Her persistence and deep understanding of the sector have enabled her to lead effectively, proving that leadership transcends such prejudices. She encourages women to seek leadership opportunities and emphasizes the importance of mentorship within the coffee industry.
Looking ahead, the NCE aims to excel in service delivery by understanding and anticipating stakeholder needs. By building effective communication systems and fostering resilience among coffee producers, the exchange aspires to remain a vital marketplace for Kenyan coffee. Recognizing the producers as the backbone of the sector, the CEO advocates for their empowerment and the inclusion of youth to ensure the industry’s sustainability.
