Nairobi Coffee Exchange has announced plans to enhance its revenue from various services in a bid to cushion itself from fluctuating global prices.
Through its 2026-2030 strategic plan, the exchange intends to diversify its revenue streams by increasing membership fees, introducing additional services such as market intelligence, and availing new trading platforms.
NCE plans to increase revenue from auction fees by 20pc annually by 2030, charge annual membership fees, auction commissions and other services.
This revenue diversification strategy is expected to help NCE raise its non-auction revenue to 40pc of total income by 2030.
According to NCE, additional revenue from alternative sources will help stabilize its finances in the event of fluctuations in global coffee market owing to change in demand, global supply chain disruptions, weather events, and geopolitical instability.
Speaking during the launch, NCE Chairman Kenneth Gitonga said the exchange is also targeting to enhance its investment in technology to automate most of its transactions.
“We are going to give information real time. We are really investing in technology to ensure that farmers can follow their coffee, buyers can also trace where their coffee is coming from and ensure a smooth flow. so we want to position Kenya as the main market for the region,” said Kenneth Gitonga, NCE Chairman.
Latest data by the Kenya National Bureau of Statistics (KNBS) indicate that last year, NCE coffee auction sales topped Ksh 38.7 billion with a total of 41,561.91 metric tonnes of coffee traded.
“I would attribute that to more efficiency at production level, more information to support farmers to make business decision in the processes as well as a better system for distribution of the resource through the Direct Settlement System,” said Lisper Ndungu, NCE Chief Executive Officer.
NCE also plans to offer buyers and traders market analysis, trading tools, or enhanced data insights through subscription fee, introduce fees for digital processing of transactions, including payments and settlements, through its Direct Settlement Scheme (DSS) and other digital platforms.
Currently, a buyer pay an entry fee of Ksh 50,000 per year while new broker pays Ksh 75,000 per year to participate in the auction. Coffee growers are also required to pay an annual fee of Ksh 20,000.
