Kenya is betting on digital technology to transform its struggling coffee sector, as a sharp drop in auction volumes has left farmers exposed and revenue under pressure.

Auction activity at the Nairobi Coffee Exchange (NCE) tumbled from 3.2 thousand metric tonnes in April 2025 to just 0.4 thousand tonnes in May, forcing a market pause in June. Despite the scarcity, prices rose modestly from $6.37 to $6.97 per kilogram, while export volumes fell from 4.6 thousand tonnes in June to 2.5 thousand tonnes in July, slashing earnings from Kenyan shilling 4.5 billion to Kenyan shilling 2.5 billion.

To address these inefficiencies, the NCE will launch Kenya’s first global online coffee auction, opening the market to international buyers and reducing the influence of entrenched cartels. Agriculture Cabinet Secretary Mutahi Kagwe said the digital platform will bring transparency and fairer pricing. “Technology will deliver better prices for our farmers,” he said.

The reforms go beyond trading platforms. Cooperatives Cabinet Secretary Wycliffe Oparanya outlined a programme to modernize 1,176 cooperative factories and triple national coffee output from 50,000 to 150,000 metric tonnes within three years. The Direct Settlement System, managed by Co-operative Bank, now ensures farmers receive 80 percent of proceeds directly, safeguarding them from intermediary exploitation.

Kenya’s coffee sector, which earned KSh 40 billion in exports last year, has lagged behind global demand for specialty and single-origin beans. Officials are also eyeing continental influence, with plans to advocate for independent African coffee markets at the upcoming World Food Forum in Rome. Kagwe said the goal is clear: “Africa must control its own value chain, from farm to cup.”