The Capital Markets Authority (CMA) has issued two full licenses to Kipkelion Brokerage Company Limited and Murang’a County Coffee Dealers Company. This brings the number of coffee brokers that have fully complied to three.
Meru County Coffee Marketing Agency Ltd was the first to be granted a full coffee broker licence by CMA, in line with the Capital Markets (Coffee Exchange) Regulations, 2020.
Mt. Elgon Coffee Marketing Agency Limited and United Eastern Kenya Coffee Marketing Company Limited had their provisional licenses extended by six months to 30 April 2022 to give them more time to come into full compliance.
Wyckliffe Shamiah, CMA Chief Executive said the Authority continues to work with all stakeholders in the coffee sub-sector to ensure that various players in the value chain are brought into full compliance with the Coffee Exchange Regulations.
The Authority is mandated to regulate the structured spot commodity markets in Kenya.
The Coffee Exchange Regulations were gazetted by the Cabinet Secretary of the National Treasury and Planning on 3rd April 2020.
The Coffee Exchange Regulations together with the Crops Coffee General Regulations, 2019 envisage that the NCE and coffee brokers are to be licensed and supervised by the CMA.
A move by CMA to issue a full broker license to 3 coffee firms happens when the Agriculture CS Peter Munya extended the old coffee regulations by 5 months ending December 2021.
Munya has always insisted that he will not allow CMA to take over the regulation of coffee as the Nairobi Coffee Exchange’s transfer to the regulator was done without following the established guidelines.
He argues that the transfer was not carried out properly as the Plant Law was never changed, adding that it mandated the Agriculture Cabinet Minister to keep the coffee value chain going.
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