Coffee Farmers to start trading their produce at Nairobi Coffee Exchange (NCE) from April 10.
This follows the lapse of the 90-day period provided for coffee unions to obtain clearance from the Capital Markets Authority (CMA) and make preparations for trading in accordance with the new regulations.
As per the regulations, the NCE is required by law to be overseen and regulated by the government agency, CMA.
The National Coffee Cooperative Union (NACCU) stated that implementing this action will promote orderliness and equitable trading practices and eradicate any underhanded activities during auctions.
NACC’s Chairman, Francis Ngone, recognized that there are difficulties associated with this initiative since certain unions have preexisting agreements with marketers.
Amidst low market prices, farmers are currently struggling, and therefore, they are holding onto the commodity, coinciding with the introduction of the new regulations.
We know there is some produce from the season that has just ended. What do we do about that? We are also coming to the end of the coffee season, which we will handle as time goes on. Right now, we are finishing up with the operating structure.
NACC’s Chairman – Francis Ngone
NACCU, whose membership is drawn from the 31 coffee-growing counties in Kenya, believes that the recent changes to the trading system will benefit farmers by increasing their earnings and ensuring prompt payments.
However, this comes at a time when production in Kenya has been decreasing due to expensive inputs, delayed payments, and low market prices, with only 34,500 tonnes produced last year.
The Co-operative Ministry’s finance and planning director, Francis Wekesa, reported that the current production area in Kenya is 108,199 hectares, with 28,000 registered cooperatives possessing assets valued at over KES 1.5 trillion.
The CMA has extended the NCE’s operating approval until April 30, 2023, while four new coffee brokers have been licensed, and six others are already holding valid licenses.
Although some brokers faced delays in being admitted to the trading floor, the CMA intervened and ensured that all duly licensed brokers were accepted by the NCE.
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