Kenya’s Coffee Earnings Surge 49% On Rise In Exports

By Jane Muia / Published December 29, 2022 | 8:19 pm

The value of Kenyan coffee exported in the 10 months to October surged 49 percent on the back of increased shipments.

Data from the Kenya National Bureau of Statistics show the country exported 43,308 metric tonnes (MT) of coffee valued at 33.8 billion shillings, up from the 32,992 MT at 22.5 billion shillings exported in a similar period last year at the height of the covid 19 pandemic.

During the period under review, a kilogram of the beverage traded at an average of 5.27 dollars(702.81 shillings) in the global market, lower than the 5.91 dollars(728.70 shillings) fetched in a corresponding period last year.

This indicates that the earnings were boosted by increased exports of the commodity to the world market following reduced production in Brazil – the world’s largest grower. Kenya’s Coffee Directorate acting director Enosh Akuma attributed the surge in production to government policies that provide farmers with low-cost loans from a revolving fund since 2020, and subsidized fertilizers.

Brazil in the last crop season experienced low production as a result of bad weather, setting the stage for good earnings for Kenya’s coffee. The coffee crop year starts every October. Traders say favorable weather in Brazil has prompted coffee tree flowering with the trend expected to continue over the next months. Colombia, Central America, and Mexico are also witnessing good weather for harvesting.

Projections indicate there will be a good crop on the global market this crop season which could impact local prices given that Kenya sells more than 95 percent of its coffee to the world market. The country uses international prices as a benchmark for the local price at the Nairobi Coffee Exchange.

Farmers are now urging the government to be quick in implementing the guaranteed minimum returns promised by Wiliam Ruto in his manifesto. According to the Kenya Coffee Planters Association (KCPA), the minimum returns will cushion farmers from losses at a time when the value of the commodity is diminishing.