The Capital Markets Authority (CMA) has added four more coffee brokers to its roster, increasing the total to ten, as part of efforts to improve the coffee sub-sector.
Kinya Coffee Marketing Agency received a full license, while Kiambu Coffee Marketing Company, Bungoma Union Marketing Agency, and Meru South Coffee Marketing Company received provisional licenses valid for six months.
All licenses were granted under the Capital Markets (Coffee Exchange) Regulations 2020, joining the existing license holders.
Following an extension of its in-principle approval by the CMA, the Nairobi Coffee Exchange will continue operating as a coffee exchange until April 30, 2023, to allow for a smooth transition towards full compliance with the Capital Markets Regulations of 2020.
The momentum of the reform agenda needs to be sustained to ensure full implementation of the Coffee Exchange Regulations. This is expected to ensure the marketing and trading mechanism at the Coffee Exchange promotes fair trade, is transparent and enhances price discovery, ultimately benefitting the coffee farmers.
CMA Chief Executive Officer – Wyckliffe Shamiah
The NCE has been directed to allow entities with valid coffee broker licenses from CMA to trade immediately.
The recent withdrawal of amendments to Crops Regulations by the Agriculture and Food Authority aligns with the Capital Markets Regulations, leading to a favourable outlook for coffee industry reforms.
The Capital Markets Act of 2016 gave CMA the power to regulate the coffee market as a spot commodity, as stated in Section 11(3).
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