Impact of Exchange Rate Volatility on Coffee Export in Kenya

The data for this study was obtained from various sources. The firm-level panel data for coffee from 2001 to 2020 was obtained from the Coffee Board of Kenya, International Coffee Organization, and Penn World Table. The annual firm-level data obtained was from 8 main coffee exporters who control about 80% of the market share. These exporters are Rashid Moledina & Co. Ltd., Kenya Co-operative Coffee Exporters Limited, Dormans, Mwangi Coffee Exporters, Sannex Coffee, Africoff Trading Co. Ltd, Rockbern Coffee Group and Diamond Coffee Company Ltd. The data on the four main trade destinations (foreign importing countries) – for the period under study – was also obtained from Coffee Board of Kenya. These four countries (Germany, Belgium, the United States and South Korea) import about 61% of the total Kenyan coffee are Germany, Belgium, the United States, and South Korea. Finally, the data on the RER was obtained from Central Bank of Kenya.