At the Nairobi Coffee Exchange (NCE), coffee trading is regulated to ensure transparency and quality, with all buyers required to hold licenses issued by the Agriculture and Food Authority (AFA). These licenses grant dealers the exclusive right to purchase coffee through the weekly auction platform, creating a controlled and monitored marketplace for Kenya’s renowned coffee beans.
Currently, there are 64 licensed buyers actively participating in the ongoing trading season. Despite the relatively large number of participants, market activity is highly concentrated among a few key players. Five companies dominate the scene, collectively accounting for over 77% of total coffee purchases at the exchange. This concentration highlights the presence of strong market leaders who influence pricing and supply dynamics significantly.
Leading the market is Ibero Kenya Ltd, which commands a remarkable 26% share of the coffee auction sales. This company has acquired roughly 137,135 bags of coffee, translating to more than 8.4 million kilograms. The value of these purchases is estimated at approximately $53.5 million, underscoring the substantial investment and confidence Ibero Kenya places in the Kenyan coffee sector. Their market leadership reflects both the company’s strong operational capacity and its strategic focus on coffee as a key commodity.
Following Ibero Kenya, other major buyers include C. Dorman Ltd, which holds 16% of the market, Louis Dreyfus Company with 15%, Taylor Winch Ltd at 12%, and Sasini (K) Ltd, accounting for 9%. These companies also handle significant volumes of coffee, playing crucial roles in maintaining steady demand and supporting the livelihoods of coffee producers. Another notable participant is Kenyacof Ltd, which maintains an 8% market share, contributing further to the dynamic landscape of coffee trading at the NCE.
Beyond these dominant buyers, the remaining 23% of the market is distributed among more than 50 smaller firms. Each of these smaller buyers typically controls less than 1% of the total sales volume, with many dealing in fewer than 100 bags per auction. This diversity demonstrates that the auction platform remains accessible not only to large multinational companies but also to smaller traders and emerging businesses. Their participation enriches the market ecosystem, promoting inclusivity and providing multiple avenues for coffee producers to find buyers.
The activities of both the large and small buyers at the Nairobi Coffee Exchange play a vital role in Kenya’s economy. Coffee remains one of the country’s most important foreign exchange earners, and the auction system facilitates the flow of funds from international buyers into the local market. By ensuring that coffee sales occur transparently and competitively, the NCE supports fair pricing and helps maintain the quality standards that Kenyan coffee is known for globally.
The coffee market’s structure at the NCE, with its mixture of dominant buyers and numerous smaller traders, reflects a healthy balance between market power and competition. The large buyers bring in scale and investment capacity, which is essential for supporting extensive coffee farming and processing operations. Meanwhile, the smaller buyers offer flexibility and diversity, catering to niche markets and encouraging innovation within the sector.
Overall, the Nairobi Coffee Exchange continues to be a critical platform for the coffee industry in Kenya, linking producers with a broad range of buyers. Its weekly auctions serve as a barometer for the health of the coffee market, providing transparent price discovery and facilitating the efficient movement of coffee from farms to global markets. The combination of established market leaders and smaller players ensures that the auction remains vibrant, competitive, and capable of adapting to changes in both supply and demand.
With coffee demand consistently strong, the role of licensed buyers at the NCE is essential in sustaining the sector’s growth and supporting Kenya’s position as a key player in the international coffee trade. The exchange’s structure encourages fair competition, transparency, and access, ensuring that coffee producers continue to benefit from global market opportunities.
