Nairobi: An estimated 6,650 bags of coffee weighing 420,267 kilos that traded at the Nairobi Coffee Exchange (NCE) on Tuesday earned farmers approximately Sh. 380 million. The auction conducted at Wakulima House in Nairobi witnessed low volumes of coffee and a decline in quality grades as the main crop harvest came to an end.
According to Kenya News Agency, the highest price achieved during the auction was Sh. 64,754 per bag of grade AA coffee from Ruchu Gacharage Coffee Factory of Murang’a County, sold to Taylor Winch (Coffee) Limited. Liwan Coffee Factory achieved the second-best price of Sh. 64,316 per bag of grade AA coffee. The average price across all transactions was Sh. 44,979 per 50kg bag, translating to Sh. 138 per kilo of cherry.
The NCE reports reflected reduced deliveries, with 506 bags of grade AA and 960 bags of AB at the auction. Ten brokers participated, with New KPCU trading the highest volume of 2,052 bags, followed by KCCE Marketing Agency, which sold 1,116 bags. Minnesota Coffee Marketers traded 787 bags, while Alliance Berries Ltd sold 736 bags.
Regarding coffee grades traded, the NCE data revealed that the Mbuni Heavy (MH) grade dominates sales for four of the ten brokers, while the AB grade is prominent across almost all agents. Baringo Kawa Brokerage has the highest concentration of a single grade, with 61 percent of their sales coming from the Mbuni Light (ML) grade. Kirinyaga Slopes Coffee Company achieved the highest average price while maintaining a diverse portfolio with a strong focus on the AB grade.
Major buyers included established companies such as Ibero Kenya Ltd, Louis Dreyfus Company, Kenyacof Limited, Taylor Winch (Coffee) Limited, and Sondhi Trading Co. Ltd.
According to NCE CEO Lisper Ndung’u, coffee earnings for the crop year 2024/2025 have been better compared to returns realized in the previous year. “By the end of April this year, the coffee sold at the NCE auction had fetched Sh. 27 billion, compared to Sh. 16 billion that was realized in the previous year. The better earnings could be attributed to reforms in the sector and an increase in the production of premium grades of cherry,” stated Ms. Ndung’u.
She noted that the auction will proceed for a two-month recess, lauding coffee growers and cooperative societies for striving to produce high-quality coffee that has attracted international markets.