Coffee farmers earn Sh19b in eight months

Nairobi Coffee Exchange Chairman Kenneth Gitonga and CEO Lisper Ndung'u. [Boniface Gikandi, Standard] 

Coffee farmers pocketed Sh18.6 billion from selling 507,878 bags of coffee through the Nairobi Coffee Exchange (NCE) online trading platform between October 1, 2023 and June 21, 2024.

During the period, coffee experts say smallholder producers who presented premier grades of AA and AB earned better returns from their berries. NCE Chairman Kenneth Gitonga said 13 coffee brokers participated in the auction process during the period.

Alliance Berries Ltd, Kirinyaga Slopes and New KPCU were listed as the leading coffee brokers after they presented a huge consignment of coffee into the auction market.

Gitonga said the average price of the commodity was Sh30,649 per bag of coffee with payment remitted through the Direct Settlement System (DSS), ahead of disbursement to the cooperatives and estate farmers.

“In the year, the buyers were attracted to premier grades of AA and AB, and we have encouraged the farmers to ensure they produce the quality grades aiming at achieving high prices in the market,” Gitonga said.

NCE Chief Executive Lisper Ndung’u said Alliance Berries Ltd presented 125,589 bags of coffee that earned the growers Sh4.8 billion followed by Kirinyaga Slopes generated Sh4.7 billion from the sale of 115,259 bags. “New KPCU presented 114,105 bags that earned the growers Sh4 billion as the Kipkelion brokerage firm had 35,089 bags that were traded for Sh1.1 billion,” she added.

Kinya Coffee presented 21,968 bags for Sh641.5 million, Meru County 10,241 bags trading for Sh327.5 million and Minnesota presented 3,107 bags valued at Sh100.2 million.

Others were Mt Elgon, which made Sh433.1 million after the auction of 13,144 bags, Murang’a County raised Sh66.9 million from the presentation of 1,976 bags while United Eastern delivered 11,097 bags for Sh341.8 million.

Coffee Directorate acting director Dr Benson Apuoyo said in the 2022/2023 period, 48,649 tonnes of clean coffee were produced compared to 51,853 tonnes recorded in 2021/2022.

Apoyo said they are out to ensure players in the value chain abide by the regulations, which allowed farmers to earn Sh17.7 billion from the produce. [Boniface Gikandi]

“The regulator is working with the technical persons focusing on increasing production as it has been the government strategy,” he said

A farmer, Mwangi Mwagiru from Kibirigwi Coffee Farmers Society, in Kirinyaga County, said the performance was great but players in the coffee value chain should address shortcomings and delays caused by the millers. 

The government, he said, should strengthen the regulations, and license more millers to end the congestion in the existing ones.

“Deputy President Rigathi Gachagua has been championing an increase of production from 51,000 tonnes to 100,000 tonnes in five years that could be achieved through funding,” said Mwagiru.

Gatagua Cooperative Society Chairman Mr Harrison Chege said implementation of coffee regulations faced myriad challenges but was later streamlined.

Mr Chege said the milling process affected many of the farmers, in the crop year 2023/2024. “Due to the hitches the majority of the societies failed to achieve the best prices owing to the delay by the coffee millers,” said Chege.

He said the sector has transformed with growers getting better returns through the DSS platform.

Amica Sacco CEO Dr James Mbui said the saccos had facilitated the processing of the cherries and other operations.

“Amica Sacco this year has granted more than Sh350 million to the cooperative societies to assist in the processing of cherry and payment to the factory employees,” said Mbui.