This archive report was first published on 24 July 2019.
On July 1, 2019, the Crops (coffee) General Regulations came into effect, marking a significant shift in the coffee industry in Kenya.
The Nairobi Coffee Exchange (NCE), which trades over 90% of Kenyan produced coffee, will now be licensed by the Capital Market Authority (CMA). This move aims to bring transparency to the coffee trading process, which has been marred by price manipulations by unscrupulous stakeholders.
Industry players, including county governments, cooperatives, and traders, will be required to digitize their operations within the next year. This will enable easy access to the system by other players and ensure business continuity in case of a computer system failure.
According to the Crops (coffee) General Regulations, every industry player must digitize their operations for efficient service delivery. This includes having a system with access by multiple parties, protection against unauthorized entry, and destruction and tampering of data.
The new regulations also aim to revive the coffee industry by ensuring that farmers receive prompt payments. Payment must be made within 5 days of purchase, and failure to comply with this guideline will result in roasters and buyers being suspended from trading.
