Coffee exports up to Sh43bn in nine months on higher prices

The value of Kenya’s unroasted coffee exports jumped 38.6 percent to Sh43.4 billion in the nine months to September, signalling a price-driven boom that strengthened the sector’s recovery momentum.

Fresh data from the Kenya National Bureau of Statistics (KNBS) shows that exports of the commodity rose from Sh31.3 billion in a corresponding period last year, marking the fastest expansion since 2022 when the value surged 51.1 percent to Sh31.4 billion.

The growth reflects a steep rise in average auction prices, which increased to $6.99 (about Sh960) per kilogramme this year from $4.58 (Sh581) last year, outweighing the modest growth in export quantities during the period.

The value of Kenya’s unroasted coffee exports jumped 38.6 percent to Sh43.4 billion in the nine months to September, signalling a price-driven boom that strengthened the sector’s recovery momentum.

Fresh data from the Kenya National Bureau of Statistics (KNBS) shows that exports of the commodity rose from Sh31.3 billion in a corresponding period last year, marking the fastest expansion since 2022 when the value surged 51.1 percent to Sh31.4 billion.

The growth reflects a steep rise in average auction prices, which increased to $6.99 (about Sh960) per kilogramme this year from $4.58 (Sh581) last year, outweighing the modest growth in export quantities during the period.

The latest numbers extend a recovery that began early this year after a difficult 2023 period when value and volumes fluctuated under reduced farm investment and erratic weather.

Kenya’s coffee is sold through the Nairobi Coffee Exchange (NCE) and through direct sales channels that serve Europe, North America, and select Asian markets.

This year’s earnings growth is expected to support farmers in the coming months as cooperatives and estates settle payouts aligned to the higher international price environment.

The strong nine-month showing mirrors earlier signals from global agencies, including a June United States Department of Agriculture (USDA) forecast that projected higher Kenyan production on the back of favourable prices and improved farm practices.

The USDA anticipated 13.3 percent growth in Kenya’s coffee production to 850,000 bags in the 12-month marketing period that started in October this year, up from 750,000 bags produced in the period ended September.

The agency, through its foreign agriculture service division, said the expected rebound would be informed by higher coffee prices, the government’s ongoing coffee reforms programme, and the slowdown by farmers in converting their coffee plantations into real estate business.

‘Following a year of high prices, farmers will be able to increase fertiliser application and improve disease and pest control. In addition, coffee plantations will be at the peak of the biennial production cycle that is characteristic of Arabica coffee,’ the US agency wrote in a report dated May 15.

The government has been pushing reforms intended to improve transparency at the auction, streamline licensing, and stabilise marketing structures to protect farmers from value losses.

The reforms include transferring oversight of the NCE to the Capital Markets Authority (CMA) and licensing new brokers to widen competition in marketing services.

Europe remains the dominant destination for Kenyan coffee, taking more than half of all shipments, followed by the United States and emerging Asian buyers.

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