The Nairobi Coffee Exchange (NCE) is set to accept the five brokers licensed by the Capital Markets Authority (CMA), reversing an earlier decision in which the exchange resisted their admission to the auction for two years.
CMA granted licenses to 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.
The Nairobi Coffee Exchange had resisted the admission of the five brokers who received regulatory approval by CMA in 2021, following an argument by the former Agriculture CS Peter Munya that it was his ministry’s mandate because the Crops Act had not been amended, and subsequently threatened to have the regulations repealed on the grounds that the CMA did not involve all stakeholders when formulating the new regulations.
We are going to admit them because we are following what the law says. At the moment, we are working on the modalities of admission.
Daniel Mbithi -NCE chief executive
The Capital Markets Authority (CMA) issued the first set of licenses to five brokers on June 28, 2021, by the Capital Markets (Coffee Exchange) Regulations of 2020.
This marks a victory for CMA after a prolonged dispute with the National Coffee Exchange (NCE) led by Daniel Mbithi which led the Capital Markets Authority (CMA) on January 23rd to extended the in-principle approval granted to the Nairobi Coffee Exchange (NCE) to continue operating as a coffee exchange until April 30, 2023.
The approval was granted by the Capital Markets (Coffee Exchange) Regulations, 2020, with the understanding that NCE will work towards full compliance with the Coffee Exchange Regulations.
