The Capital Markets Authority has issued coffee brokerage licenses to 5 coffee brokers, allowing the brokers to trade coffee at the Nairobi Coffee Exchange (NCE) with effect from 1 July 2021.
Meru County Coffee Marketing Agency Limited has been granted a full coffee broker license while other applicants; Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited and United Eastern Kenya Coffee Marketing Company Limited have been granted conditional licences, with the requirement to comply with the Coffee Exchange Regulations within the next three months.
The Capital Markets Authority regulates the coffee commodity market in Kenya, supervises the Nairobi Coffee Exchange (NCE) and issues licenses to coffee brokers at the NCE.
In April last year, CMA introduced new rules to govern the Nairobi Coffee Exchange. The rules called for licensing of brokers; establishment and operationalization of a direct settlement system for expedited and transparent payment of coffee sales proceeds; conducting of trading in a secure, stable and transparent manner in an environment of fair competition; and protection of the interests of the grower, the buyer and other stakeholders at an exchange.
Wyckliffe Shamiah, CMA Chief Executive said, “The Authority is fully supportive of the reforms in the coffee subsector and is ready to execute its mandate as envisaged in the regulatory framework.”
The authority is working closely with the National Treasury and Planning, the Central Bank of Kenya, the Ministry of Agriculture, Livestock, Fisheries and Cooperative, Agriculture and Food Authority, NCE, the State Department for Trade, Council of Governors, County Governments, Coffee Cooperatives, Growers, Unions, the Coffee Millers and Marketers, the Coffee Traders and other stakeholders to implement reforms in the coffee sector.
Related: CMA Sets 1 July, 2021 as the Deadline for Coffee Brokers
