Coffee made a detour around the globe before entering Kenya. Although coffee’s birthplace Ethiopia is just next door, it took 500-years before Kenyan coffee varieties started to develop their juicy coffee cherries.

Kenya grows mainly Arabica, with a small percentage of Robusta production. Coffee is often grown among other crops and shade trees like avocado are common. Most of it is grown in a very fertile volcanic soil on high altitudes between 1,400 to 2,000 meters above sea level. The growing region stretches from the hills of Mt. Kenya and almost to the capital, Nairobi. There is also a smaller region located on the slopes of Mt. Elgon.

KENYA COFFEE HISTORY| IN A NUTSHELL

Coffee was introduced to Kenya by the French missionaries from Ile Réunion as early as 1893, but it wasn’t until the 1930s that the indigenous people were empowered to grow coffee on their own lands. Prior to 1934, most coffee plantations owned by the British where Kenyans were forced to work.

Advances in the 1930s included the establishment of the Coffee Board of Kenya in 1931, and the first auction in 1935. In 1944, cooperatives were institutionalised, requiring smallholder (5 acres or less) participation, a move that weakened their standing, as the Coffee Board’s members were mostly estate owners.

However, in 1963, Kenya gained its independence from England, and plantation land was nationalised and redistributed.
Cooperatives were empowered and nearly $4 million was provided in loans for the expansion of processing capacity and building new washing stations (called factories in Kenya). While many of these loans unfortunately resulted in indebted groups, cooperatives and cooperative unions that persisted remain an important part of the coffee supply chain in Kenya to this day, first surpassing estate production volume in 1978.
Today, approximately 75 percent of Kenya’s coffee lands are farmed by smallholders, and they account for almost 70% of Kenya’s coffee production volume.

The Kenyan government recognised the importance of the nation’s agricultural sector and put a priority on economic growth through export.
In the same year as its independence (1963), Kenya mandated weekly coffee auctions as the vehicle to achieve these goals. The auction is known now as it was then: the Nairobi Coffee Exchange (NCE). The first auction was held in 1935. In 1963 -the same year Kenya was granted independence from England.

NAIROBI COFFEE EXCHANGE | NCE

The Nairobi Coffee Exchange serves as the primary platform for coffee trading in Kenya, bringing together growers, millers, and buyers in a transparent and competitive environment. The exchange operates through an electronic auction system, allowing for efficient and real-time transactions. All coffee offered at the exchange must meet specific quality standards, ensuring that only the finest beans reach the market.

FAIR COMPETITION & PRICE DISCOVERY
The Nairobi Coffee Exchange operates on a competitive bidding system, ensuring fair competition among buyers. This mechanism promotes price discovery based on market demand and supply, ultimately benefiting both sellers and buyers. The legal framework aims to prevent anti-competitive practices, guaranteeing that all market participants have an equal opportunity to participate in the trading process.

QUALITY STANDARDS & TRACEABILITY
Kenyan coffee is known for its distinct flavours and high quality, and the legal framework plays a crucial role in maintaining these standards. The Coffee Act establishes the Kenya Coffee Quality Institute (KCQI) to oversee the quality control processes. Through stringent regulations and inspections, the KCQI ensures that only coffee meeting specific standards is traded on the exchange, safeguarding the reputation of Kenyan coffee in the global market.

RECOGNISABLE AND IMPORTANT PART OF THE COUNTRY’S COFFEE TRADE
The auction is generally successful in achieving the goal of promoting high prices for coffee in Kenya and buffering the instability of prices that fluctuate based on the whims of the futures market.
Kenyan coffee is physically and sensorially assessed prior to auction, and many of the coffee lots at auction are traceable back to the local washing station operated by a cooperative. The NCE is often seen by neighbouring countries as an example to follow; prices are regularly among the highest, pound for pound, for any weekly coffee auction anywhere in the world. Today, the auctions are widely recognised as the most-transparent mechanism for the price-discovery of fine green coffees and is considered one of the finest auction systems in the world. It even served as an inspiration for the Cup of Excellence auctions.

KENYA | COFFEE VARIETALS

Around the 1930s, the Kenyan government hired Scott Labs to determine the best coffee strains to grow on Kenyan soil.
From that agrcultural research, SL-34 and SL-28 came out as winners and probably the most prized Kenyan beans.
These two varietals produce coffee with incredibly vibrant acidity and wonderful complexity.
SL-34 and SL-28 became popular with growers due to their deep root systems, which allowed them to thrive in Kenya’s arid areas without extensive irrigation. In addition, they showed higher yields and better disease resistance compared to the traditional French Bourbon rootstock.

More recently, farmers have been encouraged to grow disease-resistant varieties such as Ruiru and Batian.
Ruiru-11 was introduced by the Kenya Coffee Research Institute (CRI) in 1985. Many farmers embraced Riuru-11 for its superior resistance to Coffee Berry Disease (CBD) and Coffee Leaf Rust (CLR), along with its capability for denser planting, maximising yields in limited land areas.

Nevertheless, Ruiru-11’s susceptibility to drought and increased fertiliser requirements posed challenges. Farmers discovered a solution by grafting Ruiru-11 onto SL variety trees, combining the deep-rooted resilience of SL with the disease resistance and high yields of Ruiru-11.

In addition to Ruiru-11, farmers are exploring Batian, a newer variety introduced by the Coffee Research Institute (CRI) in 2010. Named after Mt. Kenya’s highest peak, Batian boasts resistance to both CBD and CLR, along with early fruiting within two years. Despite facing hurdles such as vegetative structure issues, Batian’s popularity is on the rise.

While traditional SL varieties still dominate Kenyan farms, Ruiru-11 and Batian are increasingly prevalent. However, due to the small scale of most farms, lot separation by variety is impractical. Consequently, most Kenyan coffee lots, whether from single estates or smallholder groups, consist of a blend of SL, Ruiru-11 and occasionally Batian.

KENYA COFFEE | FACTS & FIGURES

MY 2023/24 coffee production is forecast to increase 6.7 percent to 800,000 bags (48,000 ton) due to a recovery from drought conditions and higher fertiliser application.

Area harvested is expected to remain flat at 105,000 hectares, as new plantings are curtailed due to a shortage of planting materials and as losses associated with conversion of coffee plantations to real estate slows.

MY 2023/24 coffee exports are anticipated to grow 5.5 percent to 760,000 bags as higher production increases exportable supplies.

Presently, the coffee farming landscape in Kenya is predominantly shaped by over 600,000 smallholders who cultivate less than 5 acres each, constituting 99% of the coffee farming community.

These smallholders collectively manage more than 75% of the total coffee-growing land and contribute nearly 70% to the nation’s coffee production.

The majority of the coffee in Kenya is grown on smaller plantations with just a few hundred trees. These producers will deliver their coffee cherries to a local co-operative washing station for processing. Some washing stations will work with just a few hundred farmers, while others might work with several thousand. There are some small private farms who process their own coffee as well as a few large estate farms.

The hallmark of Kenyan coffee processing lies in the meticulous fully washed and sun-dried methods employed on raised beds. This dedication to quality and precision is upheld across the nation’s multitude of washing stations. The top-tier factories implement rigorous sorting procedures upon receiving cherries, often maintaining consistent management teams over extended periods, ensuring continuity and expertise in their operations.

KENYAN COFFEE | CHALLENGES

Kenyan coffee is celebrated globally for its vibrant and intricate flavours, serving as a cornerstone of the nation’s economy. With coffee ranking as Kenya’s third-largest agricultural export, it sustains the livelihoods of over 600,000 farmers, the majority of whom are smallholders. However, the Kenyan coffee industry grapples with various challenges in recent years.

Since the 1987/88 harvest season, there has been a significant 70% decline in coffee production, dropping from 130,000 metric tonnes to approximately 40,000 in the 2020/21 season. Climate dynamics in East Africa, characterized by erratic weather patterns often attributed to climate change, such as irregular rainfall, diminished water resources, and heightened temperatures, have adversely impacted coffee cultivation.

Moreover, Kenya’s coffee supply chain has witnessed consolidation, enabling certain entities to exploit the system to the detriment of farmers. Initiatives like the ‘Second Window’ *** introduced in 2006 aimed to establish a direct trade channel in Kenya, although its utilization remains limited. Similarly, the enactment of the Coffee Bill in 2020 sought to streamline the supply chain by eliminating certain trade licensing requirements and intermediary roles.

Similar to other African coffee-producing regions, the average age of Kenyan coffee farmers is on the rise, raising concerns about the sustainability of labour and the potential loss of invaluable expertise without a clear succession plan. Compounded by a trend of urban migration among younger generations in pursuit of alternative employment opportunities, interest in coffee farming diminishes due to perceptions of its financial instability.

Additionally, burgeoning urban development near major cities in Kenya encroaches upon available land for coffee cultivation. Consequently, some smallholder farmers opt to lease land instead of owning it outright, leading to disputes with landowners regarding plant ownership and harvest proceeds at the lease’s conclusion.

REVITALISING KENYAN COFFEE| REFORMS AIM TO TRANSFORM THE INDUSTRY FOR THE BETTER

Deputy President Rigathi Gachagua aims to boost coffee production in Kenya and address existing challenges with key reforms:

 ➺ Franchising Producers: Gachagua plans to involve coffee producers more directly in the value chain to ensure they receive fair economic benefits, leading to improved quality for consumers.

 ➺ Reviewing Licenses: Existing licenses held by millers and marketing agents will be reviewed to revoke any unfairly held licenses and eliminate consolidation in the value chain. This includes assigning specific roles to different entities to specialize in, such as brokers handling coffee classification and preparation for sale.

 ➺ Decentralized Licensing: Licensing for milling, brokerage, and coffee buying will be overseen by local governments, the Capital Markets Authority, and the Agriculture & Food Authority respectively, to ensure checks and balances along the value chain.

 ➺ New Trading System: A new trading system supervised by the Capital Markets Authority at the Nairobi Coffee Exchange will ensure transparent and efficient price discovery, with funds disbursed to farmers within 48 hours of sale through the Direct Settlement System provided by Cooperative Bank.

 ➺ Direct Sales and Payments: Farmers will no longer be required to designate marketing agents, and they will receive their sales earnings directly, bypassing delays and potential manipulation by intermediaries.

 ➺ Cooperative Reforms: Farmers will have the option to bypass cooperative unions, with reforms aimed at strengthening the New Kenya Planters Co-operative Union (KPCU) and ensuring economically viable cooperatives with better governance.

 ➺ Amendments to Cooperative Act: Gachagua plans to amend the Cooperative Act as part of the Coffee Bill to streamline governance of cooperative societies and propose merging existing financially unsustainable cooperatives.

The comprehensive nature of these reforms suggests a serious intent by Deputy President Gachagua to address all aspects of the supply chain. The Deputy President means business; he  has the backing of President William Ruto, a deep understanding of the industry from his roots in the coffee-growing Mt. Kenya region, and widespread support for change among leaders and producers;

Reviving Kenya’s coffee sector is a formidable task, but Gachagua’s reforms offer a detailed blueprint for its future. They represent the most extensive efforts in years to tackle entrenched challenges. Success, however, remains uncertain and will only be determined over time.

KENYAN COFFEE | FLAVOUR PROFILE

Kenyan coffee tends to showcase bright, juicy flavours with high acidity. The varietal, high altitude, volcanic soil, climate and processing are all key factors that contribute to the unique Kenyan flavours profile. The coffee gives a complex flavor, but also balanced and fragrant aroma, infused with floral tones. Other tones range from tart citrus to black-currant berries with incredible quality or aroma and flavour.

KENYAN COFFEE | CUPRIMA’S LINE-UP

Our SPOT position is sold out but new crop is on the way.
Pre-Book or Order Pre-Shipment Samples of these Splendid Kenyan Coffees:

Top Kiri Peaberry
Species: Arabica
Variety: SL 28, SL 34, Ruiru 11
Process: Washed
SCA score: 86,5
Cupping notes: Lemon / Floral

Top AA Gachatha
Species: Arabica
Variety: SL 28, Ruiru 11 & Batian
Process: Washed
SCA score: 86.75
Cupping notes: Blackcurrant / Almond

AA Top Gichathaini
Species: Arabica
Variety: SL28, SL34, Ruiru 11, Batian
Process: Washed
SCA score: 86
Cupping notes: Almonds / Marzipan / Tomatoes

*** Second Window System

The “Second Window” was founded in 2006 and enables private trading directly between coffee producers and international buyers like you, instead of going through the central auction system.

NCE | Nairobi Coffee Exchange

World Coffee Research | Varietal Catalogue

USDA | Foreign Agricultural Service

CUPRIMA | Cup of Excellence

EFICO | The Fabulous Flavour Diversity of World’s Wildest Coffees