NOD

CMA hands brokerage license to Embu Coffee Farmers

This is expected to ensure the marketing and trading mechanism at the Coffee Exchange promotes fair trade

In Summary
  • This now brings to six the number of coffee marketers that have fully been licensed to trade under the new regulations at the NCE.
  • This is part of the ongoing reforms in the sector to ensure farmers maximize their profits. 
Coffee farmer Boniface Murichu in his farm in Gakui village, Kandara subcounty.
Coffee farmer Boniface Murichu in his farm in Gakui village, Kandara subcounty.
Image: ALICE WAITHERA

The Capital Markets Authority (CMA) has granted full license to the Embu Coffee Farmers Marketing Agency to operate as a coffee broker at the Nairobi Coffee Exchange (NCE).

This is in line with the Capital Markets (Coffee Exchange) Regulations, 2020 which are to ensure the marketing and trading mechanism at the NCE promotes fair trade.

The regulations will also ensure transparency and enhance price discovery that will ultimately benefit farmers who will receive coffee sale proceeds efficiently.

This now brings to six the number of coffee marketers that have fully been licensed to trade under the new regulations at the NCE.

The other five include Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited, Meru County Coffee Marketing Agency Ltd and United Eastern Kenya Coffee Marketing Company Limited.

 CMA chief executive Wyckliffe Shamiah said the Authority continues to engage relevant stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction toward 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,” Shamiah said.

The Authority regulates the structured spot commodity markets in Kenya and in particular, the coffee commodity market according to Section 11(3) of the Capital Markets Act.