President William Ruto has directed the government to provide Sh100 million to facilitate the establishment of a world-class quality analysis laboratory at the Nairobi Coffee Exchange within six months. This directive was made during an Agriculture and Food Security town hall at Jamhuri Park, Nairobi, on Thursday. The laboratory aims to support the handling and marketing of specialty coffee.
The laboratory is expected to cater to specialty coffee, including through a proposed special auction for micro-lots of fewer than 10 bags. This move follows concerns that Kenya's specialty coffee is being traded through a conventional auction system that does not adequately cater for specialty coffee. A representative of the Nairobi Coffee Exchange stated that the exchange was working on a special auction to allow both local and international buyers to participate.
The representative mentioned that the exchange needed a world-class auction platform and its own quality analysis laboratory operating on ISO-certified standards recognised internationally. The exchange had previously discussed a Sh50 million pledge by the President towards the laboratory. However, Ruto asked the relevant Cabinet Secretary to look for Sh100 million to ensure the project is implemented.
The exchange representative stated that the laboratory could realistically be established within six months. Ruto then set the six-month period as the deadline for the project, saying the timeline would begin immediately. He emphasized that the laboratory would create an opportunity for farmers producing specialty coffee to access global markets.
The exchange is also working on a digital auction platform that would allow buyers from anywhere in the world to purchase coffee through the Nairobi Coffee Exchange. The proposed specialty auction is intended to give smaller lots of high-quality coffee a separate platform from conventional coffee traded through the exchange.
The discussion also focused on how quickly proceeds from coffee sales reach growers. The exchange stated that money reaches the grower's account within five days after coffee is sold. It clarified that a grower can be an individual farmer, cooperative or association of coffee farmers. Farmers operating through cooperatives may choose to have their coffee aggregated before payment.
Ruto noted that the reforms had also improved farmers' ability to track their coffee and know when it has been sold. He stated that today, farmers can follow and know when their coffee was sold, and receive payment after five days. The establishment of the laboratory and digital auction platform is expected to boost Kenya's coffee sector.
Key points
- President Ruto directs Sh100 million for a world-class laboratory at the Nairobi Coffee Exchange.
- The laboratory aims to support specialty coffee and cater to micro-lots of fewer than 10 bags.
- The project is expected to be completed within six months.
