Kenya to open coffee auctions to international markets – CS Mutahi Kagwe

Speaking in Nyeri County on Saturday, Kagwe emphasized the urgent need to align global coffee prices with farmer payouts.

He elucidated that this reform follows a consensus reached during inter-ministerial meetings with Cooperatives CS Wycliffe Oparanya.

“It is unjust to exclude global buyers who are ready to offer better prices. By opening the market, we’ll uplift the value chain and ensure our farmers benefit from their hard work," Kagwe noted.

CS Kagwe added that the digital infrastructure developed during his tenure as ICT Minister now enables international buyers to participate in Kenyan auctions and make immediate payments, paving the way for fairer and more competitive pricing.

“Coffee auctions can no longer be the preserve of a few individuals. They must now be open to the entire international market,” he said.

The monumental reform comes when Kenya’s coffee sub-sector is experiencing renewed momentum. 

According to the ministry, clean coffee production increased to 49,501 metric tons, with the national average cherry price rising from Ksh. 71.97 to Ksh. 81.05 per kilogram in the 2023/2024 season. 

Nyeri County, a renowned coffee-growing region, led the way in 2024/2025 with factories such as Ruarai under Ruthaka FCS paying as high as Ksh. 145.70/kg.

The ministry adds that Nyeri’s cooperative movement remains strong with over 103 wet mills and 33 million kilograms of cherry processed last season. 

The county is also leading in digital traceability and direct market access, with nearly 30% of its coffee sold to premium buyers in markets such as the U.S., Japan, Korea, and Scandinavia.

CS Kagwe also revealed plans to install solar panels in coffee factories to reduce energy costs and improve operational sustainability. 

This, he said, would enhance profitability and support the overall modernization of the coffee value chain.

"With global prices reaching new highs and a foundation of government-led interventions—including subsidized inputs, modern infrastructure, and market diversification—the government is optimistic that Kenyan farmers are on the path to sustained prosperity in the specialty coffee market," the ministry added.