Six Buyers Take Lion’s Share of Nairobi Coffee Auction as Sh947 Million Changes Hands

Six major buyers purchased about 85 per cent of coffee traded at the latest Nairobi Coffee Exchange (NCE) auction, highlighting the strong influence of a small group of companies on Kenya’s coffee market.

Sale 36, held at Wakulima House in Nairobi, generated Sh946.98 million from 1,067,915 kilograms of clean coffee packed in 17,315 bags.

The coffee recorded an overall average price of Sh44,410 per 50-kilogramme bag. This translates to roughly Sh136 per kilogramme of coffee cherry before deductions for processing, marketing and other factory expenses.

Ibero Kenya was the largest buyer, purchasing 4,230 bags, equivalent to 24.48 per cent of the total volume offered. The purchases were valued at approximately Sh230 million.

Kenyacof Limited followed with 4,009 bags, while C. Dormans SEZ bought 3,451 bags. Taylor Winch purchased 1,195 bags, Global Mark Foods bought 901 bags and Sondhi Trading acquired 841 bags.

Together, the six companies bought 903,073 kilograms of coffee, accounting for roughly 85 per cent of the auction volume.

The concentration was even higher among the three leading buyers. Ibero Kenya, Kenyacof Limited and C. Dormans SEZ alone accounted for about 68 per cent of the coffee traded during the sale.

The results underline the influence large buyers can have on price discovery and trading conditions at the Nairobi Coffee Exchange, where farmers’ cooperatives, estates, marketing agents and buyers meet to trade coffee.

On the marketing side, New Kenya Planters’ Cooperative Union (New KPCU) handled the largest volume. The agency sold 4,949 bags weighing 305,083 kilograms at an average price of Sh44,258 per bag.

Alliance Berries Limited followed with 3,470 bags weighing 214,212 kilograms at an average of Sh46,328 per bag. Kirinyaga Slopes Coffee Brokerage Company marketed 2,947 bags at an average price of Sh42,058 per bag.

Meru County Coffee Marketing Agency sold 1,194 bags at an average of Sh46,587, while KCCE Marketing Agency handled 1,096 bags at Sh46,846 per bag. Coffee Estates Bourgeoisie Brokers sold 1,063 bags at an average of Sh45,034.

United Eastern Kenya Coffee Marketing Company recorded the highest average price among the participating brokers, selling 41,856 kilograms at Sh46,847 per 50-kilogramme bag.

Quality remained an important factor in the auction. Grade AB accounted for the largest volume, with 6,869 bags generating Sh403.5 million. Grade C followed with 5,107 bags worth Sh278.5 million.

AA coffee recorded 1,497 bags valued at Sh94 million. The grade also achieved the highest price of the auction, with an AA consignment from Tegu Coffee Factory in Nyeri County fetching Sh56,035 per 50-kilogramme bag.

The coffee came from Tekangu Farmers’ Cooperative Society and was marketed by Alliance Berries Limited.

The strong performance of the Tegu consignment points to the premium available for high-quality coffee as producers seek better returns. It also comes as Kenya continues efforts to improve quality, strengthen marketing systems and expand access to local and international markets.

For coffee-growing counties such as Nyeri, Murang’a, Kirinyaga and Meru, NCE auction prices remain an important indicator of market conditions. However, the prices received by farmers ultimately depend on deductions and costs incurred between production, processing, marketing and final sale.

The concentration of purchases among a few major buyers also keeps attention on competition and price discovery within Kenya’s coffee marketing system as the industry seeks to improve farmer earnings.