The coffee sector in Kenya is experiencing a resurgence, marked by a significant increase in traded volumes and market value, showcasing a positive trend in the market.

Data from the NCE (Nairobi Coffee Exchange) indicates a substantial growth in volumes offered for sale, rising from 3,773 bags on August 15 to 20,199 bags on December 13. This increase demonstrates renewed activity in the market.

The price performance of various coffee grades has been dynamic during this period. While the average price of premium coffee beans (AA grade) decreased, the All grade witnessed an increase, reflecting the fluctuating nature of coffee prices in the market.

Reforms in the coffee sector, including the introduction of the direct settlement system in the Capital Markets (Coffee) Exchange Regulations of 2020, have positively impacted market dynamics. The direct settlement system, managed by the Co-operative Bank of Kenya, has expedited and transparently handled coffee sales proceeds.

The restored confidence among market participants, the increased number of buyers (18) and sellers (10) at each auction, and the overall improvement in global coffee prices contribute to the stability observed in the market.