The number of licensed coffee brokers now sands at ten after the Capital Markets Authority (CMA) licensed four more in the ongoing the sub-sector reforms.
This comes on the back of extension of the in-principle approval granted by CMA to the Nairobi Coffee Exchange (NCE) to continue operating as a coffee exchange from December 31, 2022 to April 30, 2023.
The move is expected to give room for transition and progression towards full regulatory compliance with the Capital Markets (Coffee Exchange) Regulations, 2020.
In the new entries Kinya Coffee Marketing Agency Limited has been granted a full license.
Kiambu Coffee Marketing Company, Bungoma Union Marketing Agency and Meru South Coffee Marketing Company on the other hand were granted in-principle approved licenses for six months.
“The momentum of the reform agenda needs to be sustained to ensure full implementation of the Coffee Exchange Regulations,"said CMA chief executive officer Wyckliffe Shamiah.
He said 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.
The coffee brokers were licensed under the Capital Markets (Coffee Exchange) Regulations, 2020.
Those earlier cleared by CMA are Eastern Kenya Coffee Marketing Company, Meru County Coffee Marketing Agency, Kipkelion Brokerage Company, Mt. Elgon Coffee Marketing Agency, Murang’a County Coffee Dealers, and Embu Coffee Farmers Marketing Agency.
The NCE is expected to immediately admit entities holding valid coffee broker licenses issued by CMA to the trading floor.
The Agriculture and Food Authority withdrew the June 2022 amendments to the Crops (Coffee) (General) Regulations, 2019 for harmonisation with the Capital Markets (Coffee Exchange) Regulations, 2020.
The Capital Markets Act was reviewed in 2016 to expressly provide CMA the mandate to regulate spot commodity markets including the coffee commodity market in Kenya.
CMA regulates the structured spot commodity markets and in particular, the coffee commodity market according to Section 11(3) of the Capital Markets Act.
