This archive report was first published on 28 June 2021.
On June 28, 2021, the Capital Markets Authority (CMA) issued its first set of licenses to five coffee brokers, paving the way for them to trade coffee at the Nairobi Coffee Exchange (NCE) with effect from July 1, 2021.
Among the licensed brokers is Meru County Coffee Marketing Agency Limited, which was granted a full coffee broker license. The other applicants, Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited, were granted conditional licenses, requiring them to comply with the Coffee Exchange Regulations within the next three months.
The CMA regulates the coffee commodity market in Kenya, supervises the Nairobi Coffee Exchange, and issues licenses to coffee brokers at the NCE. In April last year, the CMA introduced new rules to govern the Nairobi Coffee Exchange, including the licensing of brokers and the establishment of a direct settlement system for expedited and transparent payment of coffee sales proceeds.
According to Wyckliffe Shamiah, CMA Chief Executive, “The Authority is fully supportive of the reforms in the coffee subsector and is ready to execute its mandate as envisaged in the regulatory framework.”
The CMA is working closely with various stakeholders, including the National Treasury and Planning, the Central Bank of Kenya, the Ministry of Agriculture, Livestock, Fisheries and Cooperative, Agriculture and Food Authority, NCE, the State Department for Trade, Council of Governors, County Governments, Coffee Cooperatives, Growers, Unions, the Coffee Millers and Marketers, the Coffee Traders, and other stakeholders to implement reforms in the coffee sector.
Related: CMA Sets 1 July, 2021 as the Deadline for Coffee Brokers
