Mbuni grades depress coffee prices as auction sales hit KSh645 million
Coffee beans
By Henry Kinyua
Coffee prices remained subdued at this week’s auction at the Nairobi Coffee Exchange, even as total sales hit about Sh645.5 million.
This is a reflection of the growing impact of lower-grade beans on the market.
The auction, held on Wednesday recorded 16,290 bags of coffee traded; equivalent to 1,001,954 kilograms at an average price of USD 249.71 per 50-kilogram bag.
The figures point to continued price softness as the coffee season progresses into its late stages.
A key factor behind the weak prices was the dominance of mbuni grades in the catalogue. MH grade led with 5,404 bags (33.2 percent), while ML contributed 1,352 bags (8.3 percent), bringing the combined share of buni coffee to 41.5 percent.
This means nearly four in every ten bags traded were lower-grade beans, which typically attract lower bids.
Other grades offered included AB at 3,151 bags (19.3 percent), AA at 1,439 bags (8.8 percent), UG1 with 1,217 bags (7.5 percent), and C grade at 1,190 bags (7.3 percent). Smaller volumes were recorded for PB (570 bags), UG2 (504 bags), TT (407 bags), and T grade (368 bags).
On the demand side, buying remained heavily concentrated among a few key dealers.
Ibero Kenya Ltd emerged as the top buyer, purchasing 5,085 bags (31.2 percent). It was followed by Kenyacof Limited with 2,330 bags (14.3 percent), Global Mark Foods Ltd at 2,045 bags (12.6 percent), and Taylor Winch (Coffee) Limited with 1,180 bags (7.2 percent).
Other notable buyers included Sasini (K) Limited with 995 bags (6.1 percent) and Sondhi Trading Limited with 814 bags (5.0 percent). Together, the top six buyers accounted for 76.4 percent of all purchases, underscoring the concentration of market power.
A total of 17,022 bags had been presented for sale, down from 19,161 bags recorded in last week’s sale; a decline of 2,139 bags or about 11 percent. The drop signals tightening supply as the season advances and available stocks diminish.
On the supply side, Kirinyaga Slopes Coffee Brokerage led as the top broker, presenting 5,108 bags. It was followed by Alliance Berries Limited with 2,565 bags, New KPCU PLC with 2,290 bags, and KCCE Marketing Agency at 2,191 bags.
Other brokers included Minnesota Coffee Marketers (1,421 bags), Kipkelion Brokers (1,259 bags), CEBBA (1,052 bags), Kiambu Coffee Marketing Agency (690 bags), United Eastern Kenya Coffee Marketing Company (395 bags), and Baringo Kawa, which presented 51 bags.
Notably, several brokers; including Meru Union, Murang’a County Coffee Dealers, Kinya Coffee, Meru South, Bungoma Union, and Mt. Elgon Coffee did not present any coffee in this sale.
Overall, this week’s sale highlights a persistent trend in Kenya’s coffee sector: while trading volumes remain relatively strong, prices continue to struggle under the weight of lower-quality beans. Market observers note that until the share of premium grades improves, stronger price recovery is likely to remain out of reach.
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