Simon Chelugui Urges Coffee Farmers To Return To Farms As Prices Hit KSh 52k Per Bag

• Kenya Coffee farmers have received a boost after auction prices at the Nairobi Coffee Exchange more than tripled
• Co-operatives and MSME Development Cabinet Secretary (CS) Simon Chelugui said a bag of premium coffee now sells at Ksh 52,500
• Chelugui attributed the increase to the ongoing coffee sector reforms, urging farmers to continue producing coffee

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Coffee farmers have a reason to smile, as auction prices at Nairobi Coffee Exchange (NCE) have more than tripled.

Co-operatives and MSME Development Cabinet Secretary (CS) Simon Chelugui noted that Kenyan coffee has attracted more than 32 companies at the NCE.

What is the current price of coffee?

In a tweet seen by TUKO.co.ke, Chelugui said the price of premium coffee has shot from KSh 13,500 to KSh 52,500 per bag.

"After six months of hard work and unwavering commitment, today we received the first set of good news from the Nairobi Coffee Exchange (NCE).

"For instance, the price for Premium Coffee (AA) has risen from KSh 13,500 to KSh 52,500 per bag," said Chelugui.

Chelugui attributed the increase in prices to the coffee reforms initiated by the government.

He said the reforms have been a great move for formers, who are the biggest beneficiaries of the increase in coffee prices.

"There are 6 million Kenyans who depend on coffee for a livelihood, and the reform agenda is putting a smile on their faces. As the leader of the technical team, I am happy with the progress made and the results achieved so far," he said.

Gachagua fights coffee cartels

This came three months after the resumption of the coffee auction at the NCE.

In September 2023, Deputy President Rigathi Gachagua vowed to tackle cartels plaguing the coffee sub-sector, comparing them to tick-draining farmers.

Gachagua remained determined to bring reforms to the agriculture sector, citing success in combating cartels in the milk sector.

What is the price of coffee per kilo?

The government released an additional KSh 4 billion into the Coffee Cherry Advance Revolving Fund, managed by the New Kenya Coffee Planters Co-operative Union.

CS Chelugui revealed that the total amount in the kitty is now KSh 6.7 billion.

The fund saw farmers receive an advance payment of KSh 80 per kilogram of coffee, up from KSh 20.