Kenya opens coffee auctions to global markets to boost farmer earnings 

KENYA – Kenya’s Agriculture and Livestock Development Cabinet Secretary (CS) Mutahi Kagwe has announced a major reform in the country’s coffee sector, declaring that all coffee auctions will now be fully accessible to international buyers.  

This move is aimed at ensuring that farmers receive better prices for their produce and benefit more directly from global market trends. 

Kagwe stated that the decision was reached after inter-ministerial consultations with the Ministry of Cooperatives, led by CS Wycliffe Oparanya. He emphasized the importance of aligning the global coffee market prices with payouts to farmers. 

“It is unjust to exclude global buyers who are ready to offer better prices. By opening the market, we’ll uplift the value chain and ensure our farmers benefit from their hard work,” Kagwe said. 

The CS also credited the digital infrastructure developed during his tenure as ICT Minister, noting that it now facilitates real-time participation by global buyers in Kenyan coffee auctions and enables immediate payments to producers. This development is expected to introduce more competitive and transparent pricing mechanisms. 

Kagwe reiterated that coffee auctions can no longer be controlled by a limited number of local entities and must now operate with international openness. 

The announcement comes as Kenya’s coffee sector experiences renewed growth. Clean coffee production increased to 49,501 metric tons in the 2023/2024 season, while the average national cherry price rose from Ksh. 71.97 to Ksh. 81.05 per kilogram. 

Nyeri County has emerged as a leader in the sector, with factories such as Ruarai under Ruthaka FCS paying up to Ksh. 145.70 per kilogram.  

The county boasts a strong cooperative movement with over 103 wet mills and processed 33 million kilograms of cherry last season. 

Additionally, nearly 30% of Nyeri’s coffee is sold directly to premium buyers in markets including the U.S., Japan, Korea, and Scandinavia.  

The government also plans to install solar panels in coffee factories to reduce energy costs and enhance operational sustainability. 

The ministry noted that with global coffee prices climbing and ongoing government support, Kenya’s coffee farmers are positioned for sustained success. 

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