The value of coffee sold at the weekly auction in Nairobi grew 47.2 percent to Sh19.08 billion percent in the six months to June, new data shows, buoyed by higher volumes and improved prices.
Data by the Kenya National Bureau of Statistics shows that in the first six months, farmers sold 29,312 metric tonnes of coffee beans, up from 20,891.35 metric tonnes in a similar period last year—marking a 40.3 percent jump in sales.
The value of coffee sold at the auction Nairobi Coffee Exchange (NCE) rose to Sh19.08 billion over the six months from Sh12.96 billion in 2023.
During the six months, the price of a kilo of coffee sold at the auction averaged Sh140.5 compared to Sh129 in a similar period of 2023.
The volume of coffee delivered for sale on the NCE has improved since the last quarter of 2023 on bigger deliveries by cooperative societies.
Supplies to the auction had last year been interrupted by reforms by the Agriculture ministry, which affected the issuance of trading permits.
Deliveries of bigger stocks of coffee to the auction have been partly encouraged by improved consumption of the commodity locally.
For instance, data shows that domestic consumption of coffee jumped by 19.1 percent to hit a record high last year signalling the increased demand for coffee in a society where tea is the primary beverage.
Data from the Agriculture and Food Authority shows domestic consumption of coffee hit 2,051 metric tonnes in the year to June 2023, up from 1,722 tonnes in the previous year.
This extends the year-on-year growth in local consumption of coffee for more than eight years, even as government officials look to promote local uptake of the beverage.
Besides the bigger consumption locally, Kenya’s coffee is much sought after by roasters and blenders and the country sells its coffee to the world market. The global prices are used as a benchmark for the local price at the NCE.
The sector is however limping and requires a revamp as more farmers abandoned the crop for better rewarding ventures such as real estate and avocado farming.
The State is currently fighting to curb the slump amid concerns that the once thriving coffee sub-sector has lost its shine, with production declining from 130,000 tonnes to an average of 40,000.
