This archive report was first published on 5 October 2021.
On September 30, 2021, the Capital Markets Authority (CMA) extended the provisional licenses of four coffee brokers by a further 30 days, as per the Capital Markets (Coffee Exchange) Regulations, 2020, gazetted on April 3, 2020.
The four coffee brokers - Kipkelion Brokerage Company Limited, Murang'a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited - had been granted conditional licenses in June 2021 and were expected to be in full compliance within three months.
According to CMA Chief Executive Wycliffe Shamiah, the extension aims to allow the Authority to finalize confirmation of full compliance of the four coffee brokers with the Regulations and minimize disruptions in the coffee sub-sector value chain.
Mr Shamiah noted that the current bank guarantees by the different players shall continue in operation pending approval of the Direct Settlement System by the Nairobi Coffee Exchange.
The Authority is mandated to regulate the structured spot commodity markets in Kenya, and the Coffee Exchange Regulations together with the Crops Coffee General Regulations, 2019, envisage that the NCE and coffee brokers are to be licensed and supervised by the CMA.
