The Capital Markets Authority (CMA) has extended the in-principle approval granted to the Nairobi Coffee Exchange (NCE) to continue operating as a coffee exchange to April 30, 2023.
The approval was granted in accordance with the Capital Markets (Coffee Exchange) Regulations, 2020, with the understanding that NCE will work towards full compliance with the Coffee Exchange Regulations. This is expected to give impetus to the ongoing coffee sub-sector reforms.
The CMA Chief Executive Officer, Mr Wyckliffe Shamiah, observed that the key requirements for NCE stipulated in the Coffee Exchange Regulations include; Onboarding a Direct Settlement System provider to expedite and enhance transparency in the settlement of coffee sale proceeds as well as Submission of trading rules aligned to the Coffee Exchange Regulations to guide the trading operations at the NCE.
The coffee exchange board is also expected to strengthen the governance structure by reconstituting the board to comply with the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011.
Mr Shamiah added that NCE is expected to immediately admit entities holding valid coffee broker licenses issued by CMA to the trading floor. The brokers holding valid licenses are; United Eastern Kenya Coffee Marketing Company; Meru County Coffee Marketing Agency Limited; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency; Murang’a County Coffee Dealers Limited; and Embu Coffee Farmers Marketing Agency Limited.
‘CMA continues to engage all stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction towards 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.’ Wyckliffe Shamiah.
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