Coffee prices jumped by over Ksh3,700 in the latest auction, with farmers reaping the rewards of the recent coffee reforms.
Coffee auctioned on Tuesday, August 12, yielded Ksh556 million in total earnings, up from Ksh368.5 million in the last auction.
According to data from the Nairobi Coffee Exchange, 10,099 bags of coffee were traded, compared to 7,278 bags in the previous auction.
The average price stood at Ksh44,243 per 50kg bag, up from Ksh40,493. This equates to Ksh886 per kilogramme of clean coffee or Ksh136 per kilogramme of cherry.
However, this is nearly Ksh6,000 short of the Ksh50,802 achieved in the July 22 sale.
During the recent sale, 7,532 bags of premium-grade coffee (AA, AB and C grades) were sold, accounting for 75 per cent of the total volume sold.
The new prices come amid a seven-week high for Arabica and Robusta, with prices reaching a four-week high in the Brazilian market.
Global coffee prices in 2025 have remained volatile, shaped by erratic weather in major producing countries and shifting consumer demand.
Brazil’s lower-than-expected harvest due to drought and frost has tightened supply, while political unrest in parts of Central America has disrupted exports.
On the demand side, a resurgence in speciality coffee consumption in Europe and Asia has helped keep international prices elevated, benefiting producers who can meet quality standards.
The government has instituted ongoing coffee sector reform, including stricter regulation of marketing agents, restructuring of cooperative societies, and the push to have farmers sell directly through the exchange.
Officials say the reforms aim to eliminate middlemen, increase farmers’ earnings, and enhance traceability in the supply chain. However, some traders warn that delays in licensing and logistical bottlenecks could slow the momentum of recent gains.
At the Nairobi Coffee Exchange, the price gap between high-end AA and lower-grade coffees has widened, reflecting both quality differentials and shifting buyer preferences.
