Capital Markets Authority (CMA) has directed Nairobi Coffee Exchange to admit five coffee brokers following their licensing to the trading floor.
The brokers include Meru County Coffee Marketing Agency Ltd, United Eastern Kenya Coffee Marketing Company, Kipkelion Brokerage Company Ltd.
Mt. Elgon Coffee Marketing Agency and Murang’a County Coffee Dealers Ltd.
CMA chief executive Wyckliffe Shamiah says the licenses will allow the brokers to participate in coffee auctions at the NCE starting September 7, 2021.
The duly licensed coffee brokers communicated the urgency of allocation of lots range and brokerage codes to NCE to enable them to participate at the coffee auctions from September 2021.said Shamiah.
Further, the Authority issued the first set of licenses to five coffee brokers on June 28, this year, in line with the Capital Markets (coffee exchange) regulations, 2020.
Meru County Coffee Marketing Agency ltd is among the five brokers granted a full coffee broker license.
While a conditional license was given to the other four.
The other four are Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited.
And United Eastern Kenya Coffee Marketing Company Limited.
Trading coffee from regional countries by the NCE will boost revenue and increase productivity.
The Coffee Exchange Regulations was gazetted by the Cabinet Secretary of the National Treasury and Planning in April last year.
NCE is mandated to regulate the spot of the coffee commodity market in Kenya according to Section 11(3) of the Capital Markets Act.
CMA is working with other state and non-state stakeholders through the coordination of the Coffee Subsector Reforms Implementation Standing Committee (CSRISC)to support the implementation of reforms in the coffee subsector.