•The renewed appetite to onboard more brokers on the Nairobi Coffee Exchange comes following a successful resolution between CMA and the coffee regulator.
•However, there have been concerns as some companies that have been marketing coffee as agents are yet to be licensed despite submitting their applications a few months ago.
The on-going coffee sub- reforms has seen the number of brokerage firms increase to 14 after Capital Markets Authority licensed Kirinyaga Slopes to operate as a broker.
The firm now joins United 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 that were admitted to the exchange early this year.
The renewed appetite to onboard more brokers on the Nairobi Coffee Exchange comes following a successful resolution between CMA and the coffee regulator on who has the authority to regulate the sector.
“The momentum of the reform agenda needs to be sustained to ensure full implementation of the Capital Markets (Coffee Exchange) Regulations," said CMA Chief Executive Officer, Wyckliffe Shamiah.
This, he said, is expected to ensure the marketing and trading mechanism at the Nairobi Coffee Exchange promotes fair trade, is transparent and enhances price discovery, ultimately benefitting the coffee farmers.
A majority of the brokers are firms registered by former giant district cooperative unions.
However, there have been concerns as some companies that have been marketing coffee as agents are yet to be licensed despite submitting their applications.
The country has showed renewed efforts to boost coffee production, which once accounted for up to 40percent of forex earnings in the country.
Rising international market coffee prices has are revived farmers interest in cultivating coffee, which has been largely abandoned.
The once-lush coffee plantations in regions bordering Nairobi were quickly converted blocks of apartments as farmers sold their land plots amid a surging demand for housing, with real estate investors tabling tempting offers.
A report by Agriculture and Food Authority (AFA) Coffee Directorate showed that the country’s annual coffee production for the year 2021/2022 had increased to 51,583 metric tonnes from 34, 000 metric tonnes in 2020/2021.
The 17,000 metric tonnes increase represented a 47 percent increase and was attributed to a raft of measures taken by the government to revive the ailing sub-sector.
On Monday this week the government announced that Sh4 million has been released by the for the purchase coffee from farmers at higher prices.