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Sh21 billion coffee traded at Nairobi auction shipped to 55 countries

Business
By Boniface Gikandi | Jul 24, 2024
585,066 bags of coffee were purchased by 45 dealers. [File. Standard]

Over 500,000 bags of coffee worth Sh21 billion traded at the Nairobi Coffee Exchange (NCE), were shipped to 55 countries in the last eight months.

Between October 1, 2023 and June 28, the regulator says 585,066 bags of coffee were purchased by 45 dealers, and at the auction, 101,858 bags exported to America.

In April, the auction market generated Sh3.5 billion, and became the highest payout for the 2023/2024 season.

A report by NCE indicated that Ibero Kenya, Kenyacoff, C- Dormans, Louis Dreyfus, Taylor Winch and Sasini Kenya Limited exported the largest consignment.

In the last coffee crop year (2022/2023), 48 dealers shipped 531,210 bags, which earned the farmers Sh16.6 billion after the commodity was shipped to 79 countries.
NCE Chief Executive Officer Lisper Ndungu says: "At the auction, the dealers purchased the commodity worth more than Sh 21 billion. The payment to the farmers was remitted through the Direct Settlement System (DSS)."

The dealers shipped 101,858 bags of coffee to the US market, 75,206 bags to Belgium, while the Germany market received 67,059 bags, and Sweden 36,816 bags.

Ndung'u noted that Ibero Kenya at NCE bought 118,749 bags of coffee for Sh3.9 billion, and Kenyacoff emerged second with Sh3,875,500,938 for 108,967 bags.

"C-Dorman had 106,039 bags for Sh4.4 billion. Three dealers- Biz One, Blue Scope Shipping and Sindiswa (K) Limited each bought five bags of coffee," she said.

Meanwhile, Delanexn Ventures Kenya Ltd bought two bags of coffee for Sh94,458.

Kigumo MP Joseph Munyoro called on players in the coffee value chain to educate the farmers how to produce quality produce for the market.

Munyoro, a member of the Coffee Tea Parliamentary Association (Cotepa), said the farmers in the cooperative and estate sectors reaped benefits owing to the regulations imposed to guide the sector.

"Cotepa is pleading with the stakeholders to explore more markets for Kenyan coffee for better returns to the farmers," he said.

Coffee Directorate Acting Director Benson Apuoyo said Kenyan coffee was sold in various parts of the world with large consignment shipped to America.

"In June, dealers exported 3,821,522 kgs worth Sh2.8 billion to the overseas markets," said Dr Apuoyo.

Gatagua Cooperative Society Chairman Nahason Chege said visits by the coffee dealers have assisted in quality improvement.

Chege said the farmers' interaction with the buyers has assisted in producing quantity and quality coffee.

"I am happy that Gatagua coffee has attracted Kenyacoff at the auction, who have been our partners for a long," he said.

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