Coffee market banks on online bidding to boost farmers' returns

A coffee farmer sorts berries.[File, Standard]

The coffee market is undergoing a major shift as the Nairobi Coffee Exchange adopts online bidding as part of a new five-year strategy aimed at improving price transparency, boosting farmer earnings and restoring confidence in the sector.

The move is anchored in the exchange’s 2026–2030 strategic plan, which places digital trading at the centre of coffee price discovery.

Launching the plan on behalf of the Cabinet Secretary for Cooperatives and MSME Development, Wycliffe Oparanya, Amos Mariba, the Administrative Secretary, said the strategy aligns with ongoing government reforms targeting the revival of Kenya’s coffee industry.

“The strategic plan will guide the exchange in addressing weaknesses, managing risks, and delivering efficiency across the coffee value chain. These reforms are about making coffee a viable and profitable business for farmers again,” Mariba said.

He said payments to farmers have risen from between Sh20 and Sh40 per kilo of cherry to between Sh120 and Sh150, helped by the Direct Settlement System and a cherry advance fund that has grown to nearly Sh10 billion.

“If you want to know whether the reforms are working, talk to the farmer,” he said.

The exchange’s CEO, Lisper Ndung’u, said the shift to online bidding had strengthened price discovery by widening buyer participation and reducing opportunities for collusion.

“Every increase in value begins with the farmer. Our role is to provide a transparent platform where the best price is discovered and where as much value as possible flows back to the producer,” she said.