KENYA – Kenya’s coffee sector has witnessed a 47.2 percent revenue boost, with sales at the Nairobi Coffee Exchange (NCE) to KES 19.08 billion (US$148M) in the six months leading up to June 2024.  

This marks a notable increase from KES 12.96 billion (US$100.6M) recorded in the same period last year, according to data from the Kenya National Bureau of Statistics (KNBS).  

The surge in earnings has been attributed to higher volumes of coffee delivered for sale and improved prices. 

Farmers sold 29,312 metric tonnes of coffee beans during the six-month period, representing a 40.3 percent increase from the 20,891.35 metric tonnes sold in the same period last year.  

The price per kilo of coffee averaged KES 140.5 (US$1.09), up from KES 129 (US$1) in the previous year, further contributing to the rise in revenue. 

According to NCE, the improvement in the volume of coffee delivered for auction began in the last quarter of 2023, as cooperative societies increased their deliveries. 

Previously, supplies had been disrupted by reforms implemented by the Agriculture Ministry, which impacted the issuance of trading permits. 

Additionally, the growth in domestic consumption of coffee has played a role in boosting deliveries.  

Data from the Agriculture and Food Authority shows that local coffee consumption rose by 20.1 percent to 2,051 metric tonnes in the year ending June 2023, up from 1,722 metric tonnes in 2022.

This marks the eighth consecutive year of growth in domestic coffee consumption as the government continues to promote local uptake of the beverage. 

Despite these positive developments, Kenya’s coffee sector continues to face challenges, including rising production costs, fluctuating coffee prices, and unpredictable weather patterns. These issues have driven some farmers to abandon coffee cultivation in favor of more profitable ventures. 

To support the struggling sector, the New Kenya Planters Cooperative Union (New KPCU) has launched the Cherry Fund loan program, offering financial assistance to farmers to help boost production.

In June, the government also issued a KES 6 billion (US$46.6M) debt waiver to rejuvenate the coffee industry, benefiting over 600,000 farmers. 

In a bid to enhance exports and farmer incomes, the Kenya Export Promotion and Branding Agency (KEPROBA) recently announced plans to create a unified national coffee brand. 

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE