Inside Politics

Coffee prices at Nairobi Coffee Exchange rise on high quality beans

Thursday, July 1st, 2021 00:00 |
Coffee cherries. Photo/Courtesy

After a two-month recess, coffee prices at Nairobi Coffee Exchange (NCE) weekly auction increased by 26.8 per cent, a situation attributed to improved quality of beans offered and increase in prices at New York.  

A market report released on Sale 22 by the NCE management revealed that average prices for a 50 kilogramme bag increased to $250.66 (Sh26, 996.082) compared to $197.72  (Sh21, 294.444) recorded during Sale 21 on April 27, 2021.

This week auction prices translated to Sh724.80 per kilogramme compared to Sh425.90 recorded during Sale 21.

NCE chief executive Daniel Mbithi explained that before the market went on recess, the quality of clean beans being offered for sale was low compared to the lot that was offered this week.

Lower qualities

“We closed with lower qualities being offered. Yesterday’s catalogue had mixed qualities.

A bit of last crops and the fresh improved qualities and New York too was high with about Sh47.40 (20cts/lb),” said. Mbithi in a phone interview.  

Grade AA fetched the highest average prices of $336.51 (Sh36, 242.13) compared to Sh33,154.40 recorded on Sale 21.

While average prices in Grade AB increased to $307.66 (Sh33,135)  from $297.50 ( Sh32, 040.75) registered on April 27. 

But the value of the total coffee offered for sale decreased by 21.2 per cent to $2,537,881.28 (Sh273.8 million) compared to $3,189, 345.74. (Sh344.1 million  

For the next three months coffee marketing will be under a new regime being supervised by the Capital Markets Authority (CMA).   

Capital markets

Early this week, the capital markets regulator granted the first set of licences to five coffee brokers in line with the Capital Markets (Coffee Exchange) Regulations, 2020.

It had earlier issued a notice extending current licences for three months.  

The issued permits allow the traders to carry out coffee brokerage services at the NCE with effect from July 1.

Meru County Coffee Marketing Agency Ltd has been granted a full coffee broker licence whereas others have been granted conditional licences.

Kipkelion Brokerage Company Ltd, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Ltd and United Eastern Kenya Coffee Marketing Company Ltd were granted conditional licenses.

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