Kenya’s coffee exports to Kuwait fetched the highest prices worldwide in the three months to June 2025, positioning the Gulf state as an unexpected premium market under the direct-sales window.
New data from the Agriculture and Food Authority (AFA) shows a single consignment to Kuwait traded at $2,706.88 (about Sh349,728) per 50 kilogramme bag, more than three-and-a-half times the peak price recorded in any market a year earlier.
This translated to about $54 (Sh6,970) per kilogramme of the beverage, fetching farmers Sh160 per kilo of cherry.
The Middle East buyer out-priced long-established markets such as the United States which pegged the price at $456 (Sh58,915) per 50kg-bag, Switzerland at $339 (43,800), and the United Kingdom at $438 (Sh56,590), underscoring widening price gaps across destination countries.
Kuwait’s entry marks a new frontier for Kenya’s specialty coffee, joining emerging buyers such as the United Arab Emirates, France, Malaysia, Australia and Belgium among others, which together accounted for almost 30 percent of direct exports.
Although the Kuwaiti shipment was modest, only 120 kilogrammes, the record unit price highlights niche demand for traceable, small-lot Kenyan coffee sought by boutique roasters and premium retailers in emerging markets.
Direct sales allow growers or their co-operatives to negotiate contracts directly with foreign buyers or local roasters on mutually agreed terms without going through the Nairobi Coffee Exchange (NCE).
Direct sales have been widely viewed as a key reform lever for enhancing farmer returns, diversifying markets and reducing dependence on auction cycles that often expose growers to price and timing volatility.
During the quarter under review, direct coffee sales rose 23 percent in volume and 32 percent in value to 553.36 tonnes worth $4.61 million (Sh595.6 million), even as auction trading slumped sharply during a two-month recess.
Average direct-sale prices stood at $415 (Sh53,618) per 50 kg bag (about $8.30/Sh1,072 per kg), marking a 7 percent improvement on the previous year, supported by sustained global demand and a shift toward private contracts with overseas buyers.
AFA attributes the performance to stronger grower participation and expanding market outreach, with the number of direct-sale destinations nearly doubling from eight to 19 over a year.
Overall, Nyeri County dominated direct coffee sales with 47 percent of total exports valued at $2.32 million (Sh299.7 million), followed by Embu at 16 percent and Kirinyaga at 15 percent, reflecting the concentration of high-quality Arabica production in the central region.
Counties such as Murang’a and Tharaka Nithi, however, recorded no direct sales in the quarter, pointing to uneven adoption of the marketing channel introduced under the Crops (Coffee) Regulations 2019.
Earlier in May this year, the United States Department of Agriculture had projected a 13.3 percent growth in Kenya’s coffee production to 850,000 bags in the marketing period that started this October, up from 750,000 bags in the just-ended period.
The agency, through its foreign agriculture service division, said the expected rebound would be informed by higher coffee prices, the government’s ongoing coffee reforms programme, and the slowdown by farmers in converting their coffee plantations into real estate business.
“Following a year of high prices, farmers will be able to increase fertiliser application and improve disease and pest control. In addition, coffee plantations will be at the peak of the biennial production cycle that is characteristic of Arabica coffee,” the US agency wrote in a report dated May 15.
Since February 2023, the government has undertaken several reforms in the coffee sector, including placing NCE under the Capital Markets Authority (CMA) and the licensing of brokers to take over roles previously undertaken by marketing agents.
