Kenya’s coffee earnings dropped by 13% in the last 4 months as international prices for the commodity fell.
According to Kenya’s Daily Nation, the average price decreased from Sh25 000 (US$255)/50 kg to Sh23 300 (US$230)/50 kg. Prices on Kenya’s main grading platform, the New York Coffee Exchange dropped to a low of US$01.20/kg from US$1.50/kg.
Coffee exports account for 5% of all exports from Kenya. It is estimated that 6 million Kenyans are employed directly or indirectly in the coffee industry.
A market report by the Nairobi Coffee Exchange indicates the national earnings dropped to Sh4.7 billion (US$47 million) from last year’s Sh5.5 billion (US$55 million) during the same period under review.
While Kenya plans to raise the amount of coffee roasted locally from 5% to 10% annually over the next 5 years, productivity has also dropped. This has prompted government to implement programmes to lure back farmers to growing the crop.