The Capital Markets Authority (CMA) has issued the first set of licenses to five coffee brokers in the Country.
Conditional licenses have been issued to; Kipkelion Brokerage Company Limited and Murang’a County Coffee Dealers Company.
As well as Mt. Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited.
Additionally, Meru County Coffee Marketing Agency Limited has been granted a full coffee broker license.
This is in line with the Capital Markets (Coffee Exchange) Regulations, 2020.
According to CMA, this will allow brokers to carry out the role of coffee brokerage services at the Nairobi Coffee Exchange (NCE) effective July 1, 2021.
CMA Chief Executive Wickliffe Shamiah affirmed that the Authority is fully supportive of the reforms in the coffee sub sector .
Adding that the Authority is ready to execute its mandate as envisaged in the regulatory framework.
Shamiah says the conditional licenses will ensure trading of coffee continues at the NCE without disruption even beyond the 30 June 2021 deadline.
Nairobi Coffee Exchange(NCE)
In order to ensure that there is no disruption in the coffee value chain, the Authority has granted an extension of 3 months to the Marketing Agents currently trading at NCE for them to apply for the coffee broker license.Said Shamiah.
Furthermore, the firms are expected to come into full compliance with the requirements of the Coffee Exchange Regulations within the next three months.
The authority granted a provisional license to NCE on July 1, 2020 .
In order to continue operating in its existing form as it worked towards full compliance with the Coffee Exchange Regulations.
NCE’s in-principal approval has since been extended to December 31, 2021.
This is to enable the Coffee Exchange to come into full compliance with the regulatory requirements.
NCE is expected to competitively select a commercial bank to provide the direct settlement system for clearing .
As well as settlement of coffee proceeds during this period.