By Benadeta Mwaura - Reporter
Kenya, December 17 2025 - Kenya’s coffee sector has recorded another robust showing at the weekly auction, with the
Nairobi Coffee Exchange (NCE) reporting total earnings of Sh1.87 billion from the sale of 30,406 bags of coffee, up significantly from last week’s Sh1.4 billion.
The higher returns reflect improved volumes and quality grades attracting strong buyer demand on both the local and international fronts. The NCE report shows that grade AA and AB coffees accounted for the bulk of sales, with 11,100 bags of AA fetching Sh732.6 million and 13,402 bags of AB realising Sh830.8 million at the auction. Other grades such as C also contributed.
Alliance Berries led brokers with the highest volume marketed, followed by Kirinyaga Slopes, New KPCU and others, demonstrating broad participation in the market. The NCE CEO, Lisper Ndung’u, pointed to an uptick in quality coffee on offer, saying brokers brought more premium grades this week to meet buyers’ appetite for top-end Kenyan beans.
“Last week, there were fewer AA and AB grade bags, so this week’s volumes represent both a quality and quantity improvement,” she noted in her market briefing. Kigumo MP Joseph Munyoro, a member of the Coffee and Tea Parliamentary Group, emphasised the need for farmers to continually invest in quality production and market access if Kenya is to scale its coffee earnings and compete globally. “The farmers are being asked to invest in the production of quality coffee, eying both the local and international markets,” he said.
Sector Trends and Broader Auction Data
Recent auction performance shows a pattern of strengthening earnings on the NCE platform, with data from other weeks highlighting this trajectory. For example, earlier auctions saw strong volumes and prices, such as a Sale 10 result where more than 22,000 bags earned USD 11 million (around Sh1.4 billion) with premium grades driving top prices.
Other sector data points suggest auctions remain the backbone of Kenya’s coffee trade. A report showed that coffee earnings jumped to Sh869 million at another weekly auction after 17,293 bags traded, with grade AA fetching premium returns and strong buyer participation, a sign of sustained demand for Kenyan specialty coffee.
Why the Strong Prices And Why Now?
Analysts attribute the healthy returns at the auctions to global market dynamics that have lifted coffee prices on international futures, including weather-related supply constraints in major producing regions such as South America.
As one value-chain expert mentioned, “The auction of the large volume follows an attractive market after coffee in South America was hit by frost,” highlighting how external supply shocks can benefit producers in East Africa.
Kenya’s reputation for high-quality Arabica beans also plays a role in attracting premium bids from local and international buyers. Eleven local and foreign buyers participated in this week’s auction, with Ibero Kenya, C. Dormans, Taylor Winch, Sasini, and Kenyacof among the top purchasers, underlining confidence in Kenyan coffee’s market value.
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Farmer Empowerment and System Reforms
A key part of Kenya’s coffee resurgence lies in structural reforms such as the Direct Settlement System (DSS) operated by NCE, which enables buyers to pay directly into farmers’ accounts in a transparent, timely manner, cutting out delays and reducing financial bottlenecks.
NCE CEO Lisper Ndung’u has praised the system for improving financial stability and trust in the auction process, particularly for smallholder farmers.
Local initiatives in coffee-growing counties also point to efforts to boost productivity and farmer incomes. For example, Baragwi Coffee Cooperative in Kirinyaga has deployed extension officers to train farmers on best practices, with cooperative manager Cyrus Chomba saying the society aims to target higher-grade production because “higher coffee grades fetch more money at the auction.”
Challenges and the Road Ahead
Despite recent auction gains, Kenya’s coffee sector still faces challenges, including ageing coffee bushes, fluctuating production volumes, and competition from other African exporters.
Broader government strategy documents have noted a need to harmonise policy across multiple ministries to streamline support for the subsector and improve its contribution to foreign exchange earnings, which have declined from historically high levels.
Industry players are also eyeing new markets and digital platforms. Government plans to launch an online global auction platform aim to attract international buyers directly, boosting transparency and potentially expanding market access for Kenyan farmers.
This digital push could help tripling annual coffee production and exports in the coming years. The Sh1.87 billion result at this week’s NCE auction reinforces the growth potential in Kenya’s coffee sector, highlighting both quality improvements and strong demand fundamentals.
While structural challenges remain, the combination of market reforms, quality focus, and global price dynamics paints a cautiously optimistic picture for farmers and the broader industry moving into 2026.
