Kenya’s coffee auction volumes plunged sharply even as prices rose, new data from the Kenya National Bureau of Statistics (KNBS) shows, setting the stage for a radical overhaul of how the country’s premium beans are traded.
- •According to KNBS, coffee auction volumes at the Nairobi Coffee Exchange (NCE) fell from 3.2 thousand metric tonnes in April 2025 to just 0.4 thousand tonnes in May, prompting a market recess in June.
- •Despite the slump, average prices rose from USD 6.37 to USD 6.97 per kilogram, while export volumes slid from 4.6 thousand tonnes in June to 2.5 thousand tonnes in July, cutting export earnings from KSh 4.5 billion to KSh 2.5 billion.
- •The data underscores the sector’s deep volatility and structural inefficiencies, issues Kenya hopes to fix as it launches its first-ever global online coffee auction.
The Nairobi Coffee Exchange is preparing to open real-time bidding to international buyers in a move to dismantle entrenched cartels blamed for depressing prices and exploiting farmers.
Agriculture and Cooperatives Cabinet Secretaries Mutahi Kagwe and Wycliffe Oparanya confirmed that preparations are in advanced stages to roll out the digital platform.
“Marketing cannot be done the same way year after year and expect different results, it’s madness,” said Kagwe. “The auction must go online, allowing direct participation by international buyers. Cartels will no longer hold the market hostage. Technology will deliver transparency and better prices for our farmers.”
Kenya’s coffee sector earned KSh 40 billion from exports last year, nearly KSh 60 billion less than its late-1980s peak despite a global surge in specialty and single-origin coffee demand.
The online auction forms part of sweeping reforms to restore competitiveness, expand coffee cultivation into new regions, and raise productivity from 3 kilograms to 30 kilograms per tree. The government is also deploying more extension officers to strengthen farm management.
Cooperatives CS Oparanya outlined a plan to triple national coffee output from 50,000 to 150,000 metric tonnes within three years through a revitalization program led by New KPCU PLC, which is modernizing 1,176 cooperative factories across 22 counties. Legislative reforms under the Cooperatives Bill and Coffee Bill 2024 aim to tighten governance and boost farmer representation.
He added that the Direct Settlement System (DSS), run by Co-operative Bank, is now fully operational, guaranteeing farmers receive 80% of proceeds directly, shielding them from intermediary abuse. Over 200 cooperatives have already joined the system.
“Africa must control its own value chain, from farm to cup,” Kagwe said. “The goal is simple: to put the farmer where they belong, at the top of the value chain.”
Looking ahead, Kagwe said Kenya will push for the creation of independent African coffee markets at the upcoming World Food Forum in Rome to strengthen the continent’s bargaining power and improve farm-gate prices.
