- Kiambu, Kirinyaga, Nyeri and Murang’a contributed 31,795.36 tonnes
- Major coffee growing counties are Kiambu, Kirinyaga, Nyeri, Murang’a, Kericho and Bungoma
Image: JOHN KAMAU
Coffee farmers have received Sh12.4 billion ($89.5 million) through a new system managed by Cooperative Bank.
The five months payment has been made through the Direct Settlement System.
DSS was developed by the Nairobi Coffee Exchange to ease payment to farmers after every sale.
Lisper Ndung'u, NCE acting CEO r said since its implementation in October last year, 17.2 million kg of coffee (339,803 bags) valued at $89.5million, have been paid.
She said delay challenges have been resolved and farmers are receiving their proceeds as stipulated.
“Since the beginning of the current coffee year 2023/24, 20 coffee auction sessions have been undertaken, with average prices of $230 (Sh31,165) for a 50 kg bag. For example, during this week's auction, the average price reached $231.62 (Sh32, 310.99),” Ndung'u said.
Baringo county coffee farmers through Baringo Kawa Brokerage Company had 22 bags of clean coffee for the first time during this week's auction session.
The coffee auction was reopened by Deputy President Rigathi Gachagua on August 15 last year after a three-month recess. Since then NCE has witnessed an increase of buyers, price and volumes.
On Augusts 8, Cooperative Bank won the tender to manage the system, as part of the coffee sub-sector reforms.
Data from the Coffee Directorate under the Agriculture and Food Authority shows that the area under coffee increased from 108,199 Hectares (267365.552 acres) in 2021 to 109,384 Hectares (270293.75 acres) in 2022 which is a 1.1 per cent rise.
This is attributed to the acquisition of 1,185 Hectares (2928.19 acres) as new planting areas following the distribution of the Robusta seedlings by the Coffee Directorate.
The directorate showed that coffee growing region with the largest newly acquired area under coffee was Narok county with 240 Hectares (593 acres) followed by Baringo, Kirinyaga and Bomet at 92 Hectares (227.3 acres), 80 Hectares (193 acres) and 72 (177.9 acres) respectively.
Coffee is grown in 33 counties and the major coffee growing counties are Kiambu, Kirinyaga, Nyeri, Murang’a, Kericho and Bungoma.
In 2021-22, the coffee sub-sector recorded a 50.25 per cent increase in production from 34,512 tonnes realised in 2020-21 to 51,853 tonnes.
The increase in production is attributed to favorable weather conditions, new plantings, improved prices and bi-annual production cycle of the coffee trees.
"In recognition of the contribution of the coffee sub-sector to the country’s overall foreign earnings, the government is promoting the development of the domestic market for locally produced and processed coffee products,” said the coffee directorate.
Kiambu, Kirinyaga, Nyeri and Murang’a contributed 31,795.36 tonnes (61.32 per cent) of the total national production.
Among the top competing counties, estates were dominant in Kiambu compared to Kirinyaga where smallholders dominated.
The directorate said the highest volume so far of 50,600 tonnes was attained in 2018-19.
The export volume per year averages 44,000 tonnes.
However, comparing 2020-21 and 2021-22, there was some little improvement in volumes exported. The value realised in 2021-22 was the highest in the last 10 years.
On coffee exports, 42,858 tonnes of coffee was exported during the period under review, a 2.5 per cent rise from 41,800 tonnes exported in 2020-21.
The export values were $292.28 million (39.6 billion) in season 2020-21 and $298.56 million (40 billion) in season 2021-22 translating to a two per cent increase.
The top export destinations according to the directorate are USA at 18.9 per cent, Belgium (18.9 per cent), Germany (14.2 per cent) and South Korea at 10.2 per cent.
This is in addition to Sweden at 5.1 per cent, Tunisia at 3.4 per cent, Australia (3.0 per cent), Denmark (3.0 per cent) and Norway (2.9 per cent).
Other 39 destinations took up 20.4 per cent of the export volumes.