• The regulation is proposing that supervision be done by auction organisers like the Coffee Board.
• The Crops (Coffee) (General) (Amendment) Regulations 2022 is seeking to amend the provisions of the Crops (Coffee) General) Regulations 2019.
Image: EUTYCAS MUCHIRI
Coffee farmers are opposed to the draft Coffee Amendment Regulations 2022, which is proposing that the Capital Markets Authority be denied the supervision role of the Nairobi Coffee Exchange.
Instead, the regulation is proposing that supervision be done by auction organisers like the Coffee Board.
Farmers led by Francis Ngone chairman of National Coffee Cooperative Union (NACCU) said they want CMA to be allowed to supervise the auction as proposed under the Coffee reform agenda.
Ngone spoke during a validation workshop held on Thursday at the Agriculture and Food Authority (AFA) headquarters where farmers were denied access to AFA premises where the meeting was taking place.
The Crops (Coffee) (General) (Amendment) Regulations 2022 is seeking to amend the provisions of the Crops (Coffee) General) Regulations 2019.
According to the Ministry of Agriculture, once the regulations have been gazetted by the Attorney General, CMA will be barred from supervising the NCE.
However, if the Coffee Bill 2020 which is currently at the Senaten is passed and becomes law, the Crops (Coffee) (General) (Amendment) Regulations 2022 will be nullified. This means the Ministry will have to go back to the drawing board and formulate new regulations to operationalise the new legislation.
The Coffee Regulations 2019, led to the formulation of the Capital Markets (Coffee Exchange) Regulations 2020 that sought to incorporate coffee exchange and licensing of brokers.
This is in addition to the establishment of a direct settlement system (DSS) for an advanced and transparent process of the payment of coffee sales proceeds.
So far, under the CMA regulations, five brokers have been licensed, a situation that has worsened the rift between the Ministry of Agriculture and CMA.
The licensed brokers include Kipkelion Brokerage Company Limited (KBCL), Murang’a County Coffee Dealers Company (MCCDC), Mt. Elgon Coffee Marketing Agency Limited, United Eastern Kenya Coffee Marketing Company Limited and Meru Cooperative Union.
But the companies have been denied lots of range and broker code, which are key requirements to allow them trade at the auction.
Peter Gikonyo, the chairman Kenya Coffee Producers Association (KCPA) called on the ministry to include all stakeholders when introducing policies in the industry, adding that lack of inclusivity might lead to more harm in the industry.
“Our desire as farmers’ representatives is to ensure that the interest of the growers is catered for and a level playing ground is guaranteed. Coffee industry is a key vehicle to rural wealth creation and thus requires serious attention from all the stakeholders,” he said.
“There is a need for the Government as the key driver to ensure regulation formulations have the strength to progress the industry for many years and thus prevent piecemeal amendments,” Gikonyo added.