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Home AGRICULTURE

Kenya’s Coffee Auction Nets Sh554 Million, Signaling Positive Gains for Farmers

Harper Vaughn by Harper Vaughn
August 14, 2025
in AGRICULTURE, Economy, Finance
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Kenya’s Coffee Auction Nets Sh554 Million, Signaling Positive Gains for Farmers
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Kenya’s coffee sector continues to enjoy renewed momentum as government-backed reforms and market development strategies bear fruit, with the latest weekly auction at the Nairobi Coffee Exchange (NCE) raking in a total of Sh554 million. During the sale held at Ukulima House in Nairobi, 10,099 bags of coffee weighing 627,415 kilograms were traded, offering tangible benefits to farmers and estates across the country. The strong performance is a testament to improved market linkages, enhanced quality control, and strategic interventions aimed at revitalizing the sector.

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The auction showcased a diverse range of coffee grades, reflecting the varied quality produced by Kenyan growers. The highest price was recorded for 20 bags of the premium AA grade, including eight bags from the Muisini Farmers’ Cooperative Society of Machakos County. On average, the traded coffee fetched Sh44,204 per 50-kilogram bag, equivalent to about Sh136 per kilogram of cherry. This robust price range reflects competitive market conditions that favor quality producers and highlight the returns of sustained government investment in farmer training and market access initiatives.

Grade AA maintained its dominance in the market, fetching an impressive average price of Sh49,566 per bag. In comparison, lower grades such as UG3 averaged Sh25,443 per bag, underscoring the premium placed on superior quality. In the auction, 931 bags of grade AA coffee alone sold for Sh60.1 million, while 3,935 bags of grade AB generated Sh223 million in earnings. These figures point to the growing global appreciation for Kenyan coffee, driven largely by improved marketing strategies and increased participation in international trade fairs.

Broker participation at the auction was robust, with 12 companies actively trading. Alliance Berries Ltd emerged as the top trader by volume, handling 2,258 bags worth Sh128.3 million. Kirinyaga Slopes Company closely followed, selling 2,296 bags for Sh125 million, while KCCE Marketing Agency and the New Kenya Planters Cooperative Union (New KPCU) traded 1,277 and 830 bags respectively, earning Sh69.6 million and Sh46.9 million. The high-value transactions point to improved liquidity and efficiency in the coffee market, benefiting both smallholder farmers and large estates.

On the buyers’ front, C. Dormans Ltd led the pack, purchasing 2,271 bags worth Sh132 million, followed by Ibero Kenya Ltd, which bought 2,138 bags at Sh113.4 million. Louis Dreyfus Company acquired 2,024 bags, while Kenyacof Ltd secured 1,836 bags worth Sh103.5 million. The active participation of established dealers demonstrates confidence in Kenya’s coffee market and the global demand for its specialty varieties.

The government’s coffee revitalization programmes, which include reforms in cooperative management, farmer training, and direct market access initiatives, have begun to show measurable results. By ensuring that farmers receive better prices and more transparent market information, these policies are gradually transforming Kenya’s coffee sector into a more profitable and sustainable industry. As global coffee demand continues to grow, Kenya is well-positioned to strengthen its reputation as a producer of premium quality coffee, translating into better livelihoods for its farmers.

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Harper Vaughn

Harper Vaughn

Harper Vaughn holds a Master’s Degree in Media Relations and Management from Leeds University Institute of Communications Studies, as well as a postgraduate degree in Arts, majoring in Modern English Literature (Class of 2003). Since 2008, Vaughn has worked as a freelance writer for People’s Daily, specializing in article writing. Responsibilities include researching topics, gathering relevant information, planning article formats, and crafting well-organized, engaging pieces for publication.

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