Nairobi Coffee Exchange CEO Lisper Ndung’u
By Morris Githenya
As the coffee year 2023/2024 comes to an end on October 1, farmers are upbeat that there will be more marketing opportunities in the next season.
With only weeks to the new coffee year, in the weekly action farmers through the Nairobi Coffee Exchange (NCE) raised Sh370 million from the sale of 9,714 bags of coffee sourced from the cooperative societies and estates.
The commodity was bought by 17 local and international buyers led by Ibero Kenya, C Dorman and Taylor Winch.
NCE Chief Executive Officer Ms. Lisper Ndung’u urged the growers to continue producing the quality grades that attract the auction platform and better prices.
In the market, the coffee brokers led by New KPCU and Alliance Berries Limited presented 6,707 bags of AA and AB which accounted for 69 percent of the deliveries.
“The coffee market has been competitive with the buyers going for the quality grades of AA and AB; thus, there is a need for growers to enhance quality production to attract impressive prices offered by the buyers,” said the CEO.
Mbaranga factory affiliated to Tigania North Farmers Cooperative Society in Meru County achieved the highest price of Sh39,087 per bag in the AA quality, through the New KPCU.
The second best price was offered for the coffee from Thimu factory sold by Alliance Berries Limited at the price of Sh35,088 per bag of AA grade.
Cooperative Principal Secretary Patrick Kilemi said coffee market performance in August was healthy owing to the consistency of large brokers in presenting high volumes, and thus competitive prices
The PS said the Kenyan coffee sector, the path forward lies in embracing innovation, ensuring quality, and maintaining the strong reputation Kenyan coffee holds internationally.
“There is room for the smaller brokers to strengthen their market positions through better marketing strategies, investments in quality, or alliances that could level the playing field,” said the PS.
Kenya Coffee Producers Association Chairman Peter Gikonyo said the coffee auction has been successful despite the delay by the government to recruit more players to perfect the Direct Settlement Service (DSS).
The coffee growers, he said, in the meetings with the regulators in May and June expressed concerns for additional DSS players in the coffee value chain.
Other factories that achieved the best prices are Kaliati, Komothai, New Mitamboni, Kwa Kiinyu, and Nduluma factories.
In the market, Alliance Berries Limited delivered 1,936 bags that fetched Sh73 million, New KPCU 3,857 bags for Sh151.3 million, Murang’a Coffee 365 bags for Sh14,487,394, and Minnesota 583 bags for Sh21.8 million.
Other coffee brokers are Kirinyaga Slopes 750 bags, Meru 943 bags, Kipkelion 434 bags, and Kiambu 404 bags.
In the dealers category, Ibero Kenya bought 3,078 bags, C Dorman 1,399 bags, Taylor Winch 1,380 bags, Jowam Coffee Traders 1,242 bags, and Kenyacof Limited 1,025 bags.
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