Nairobi Coffee Exchange (NCE) will soon be placed under the supervision of the Capital Markets Authority(CMA) as it transitions to The Coffee Exchange.
- Kenya’s coffee reforms agenda, including full implementation of the Capital Markets (Coffee Exchange) Regulations, aims to establish a marketing and trading mechanism at the Nairobi Coffee Exchange that promotes fair, transparent trading activities.
- It also seeks to enhance price discovery, while also providing immense benefits to coffee farmers.
- The CMA Act has since been revised to provide the regulator with the mandate to regulate spot commodity markets including the coffee commodity market in Kenya.
This development puts closure to a long drawn-out tussle and lack of clarity regarding the mandate of the CMA and the Coffee Directorate as to who between them has the final say on matters regarding operations of the NCE.
The CMA will become the exchange’s regulator when a task force appointed by the Cabinet Secretary for Co-operatives and Micro, Small, and Medium-sized Enterprises (MSMEs) Hon Simon Chelugui, completes this Nairobi Coffee Exchange transition process. The taskforce has a brief to manage the transition of the Nairobi Coffee Exchange into The Coffee Exchange.
- Members include Kenneth Gitonga, Peter Githinji Njuki, Augustus Kipkoech Chepkurwo, and six others.
- The taskforce will be in office for 12 months until 7th December 2024 with the possibility of an extension if necessary.
- It will be based at Social Security House, the ministry headquarters.
A Secretariat has already been set up responsible for providing appropriate background briefing; including policy interpretation, developing and implementing the programmes and activities of the team; preparing the reports, and undertaking research.
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