The value of the beverage shed three percent to hit Sh34,854 for a 50-kilo bag on average from Sh37,740 realised in the previous sale.
At the New York Exchange, where Kenya sells nearly all of its coffee, the prices have also declined from 250 cents per pound previously to about 230 cents.
Coffee prices fell for the fourth consecutive auction last week due to high volumes of produce from western Kenya and Central region hitting the market.
The value of the beverage shed three percent to hit Sh34,854 for a 50-kilo bag on average from Sh37,740 realised in the previous sale.
The decline in value, says the Nairobi Coffee Exchange (NCE), was also occasioned by a mix of both low and high-quality coffee as the current season comes to a close, with the main season crop yet to fully get to the trading floor.
“We are at the moment receiving a lot of coffee from central and western Kenya and this has flooded the market forcing the prices to decline,” said NCE chief executive Daniel Mbithi.
At the New York Exchange, where Kenya sells nearly all of its coffee, the prices have also declined from 250 cents per pound previously to about 230 cents.
Mr Mbithi said the crop from western Kenya is of lower quality, which has hurt the price.
“The farmers sold the high-grade crop, which they have already exhausted and what they are getting to the market now is of lower grade,” he said.
The auction has resumed full trading with an increase in volumes of coffee. NCE had been operating two times a month in October and early November as there were no sufficient volumes to sustain weekly trading.
Despite the price dip in the last month, farmers are still in line for higher earnings this year compared to 2020.
In the 10 months to October, coffee exports earned the country Sh24.1 billion ($214 million), a 16 percent increase from the Sh20.9 billion ($186 million) the cash crop fetched in the corresponding period in 2020.
The higher earnings have been boosted by improved global prices following a fall in production in the world’s leading producer Brazil, where frost has ruined the crop.
