This archive report was first published on 20 April 2020.
On April 15, 2020, the Nairobi Coffee Exchange (NCE) conducted two postponed sales online to clear a backlog of stocks and pay farmers. However, the system used had several weaknesses in terms of pricing, prompting the need to reopen the auction hall.
NCE chief executive officer Daniel Mbithi explained that the online system was not tailor-made for trading, which led to concerns over price manipulation. He stated, "We had a backlog of two sales that we had to clear and farmers too needed to be paid their money. However, the system has some weaknesses in terms of pricing, the reason why we need to go back to an auction hall."
Despite the online trading, the average price of coffee dropped to Sh16,274 (sale 19) and Sh15,862 (sale 18), down from Sh20,000 registered in the last trading before the auction was ordered to close.
The Agriculture Food Authority, under which the Coffee Directorate falls, has assured that all necessary measures have been put in place to resume trading. Director-General Anthony Muriithi stated, "We are now waiting for the Director of Public Health to conduct inspection before we resume as our parent ministry has already written to the department."
The Ministry of Health has restricted crowds to no more than 15 people as part of efforts to curb the spread of Covid-19, which has affected over 270 people.
