Kenyan coffee prices jump over US$28.64 in latest auction as reforms boost farmer earnings 

KENYA – Kenya’s coffee prices rose sharply in the latest auction, climbing by more than Kes 3,700 (US$28.64) per 50-kilogram bag, with farmers benefiting from ongoing sector reforms. 

According to the Nairobi Coffee Exchange (NCE), coffee traded on Tuesday, August 12, generated Ksh556 million (US$4.3M) in earnings, up from Kes 368.5 million (US$2.8M) in the previous sale. A total of 10,099 bags were sold, compared to 7,278 bags in the earlier auction. 

The average price reached Kes 44,243 per 50-kilogram bag, equivalent to Kes 886 per kilogram of clean coffee or Kes 136 per kilogram of cherry. This marks a significant improvement from the previous Kes 40,493, although it remains about Kes 6,000 lower than the Kes 50,802 achieved during the July 22 auction. 

Premium-grade varieties—AA, AB, and C—dominated the latest sale, with 7,532 bags changing hands, representing 75 per cent of the total volume. 

The price surge aligns with a seven-week high for both Arabica and Robusta coffees globally, with Brazil’s market hitting a four-week peak. In 2025, international coffee prices have been marked by volatility due to erratic weather in key producing countries and changing consumer demand. 

Brazil’s production has been affected by drought and frost, reducing output, while political unrest in parts of Central America has slowed exports. Meanwhile, rising demand for specialty coffee in Europe and Asia has kept prices elevated for producers meeting strict quality requirements. 

Kenya’s recent price improvements also reflect government-driven reforms in the coffee sector. Measures include tighter oversight of marketing agents, restructuring of cooperative societies, and encouraging farmers to sell directly through the exchange. Officials say these efforts aim to remove intermediaries, boost farmer incomes, and improve supply chain traceability. 

Cabinet Secretary for Cooperatives, MSMEs, and Development Wycliffe Oparanya announced earlier this month that the government has allocated Kes 2 billion (US$15.5M) to revive coffee farming.  

An additional Kes 500 million (US$3.9M) has been earmarked for purchasing coffee seedlings, which will be distributed free of charge to cooperatives nationwide. 

“These seedlings will be distributed to coffee cooperatives across the country. Plans are underway to procure pulping machines to enhance coffee processing, addressing both quality and quantity challenges,” Oparanya said. 

The government also plans to support farmer training, with two representatives from each ward in Bomet and other target counties set to attend programmes at the Coffee Research Institute and Cooperative University, focusing on production, management, and cooperative development. 

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