CMA extends provisional licenses of coffee brokers
Nairobi, 01 Oct0ber 2021…The Capital Markets Authority (CMA) has extended the provisional licenses granted to four coffee brokers by a further 30 days from 30 September 2021, in line with the Capital Markets (Coffee Exchange) Regulations, 2020.
The move is expected to allow CMA finalise confirmation of full compliance of the four coffee brokers with the Regulations and minimize disruptions in the coffee sub-sector value chain. The four coffee brokers namely: 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.
The CMA Chief Executive Mr. Wyckliffe Shamiah noted, ‘the Authority continues to engage relevant stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction towards full implementation of the Coffee Exchange Regulations. This is expected to ensure the marketing and trading mechanism is transparent and enhances price discovery, ultimately benefitting the coffee farmers, who will receive coffee sale proceeds efficiently once the Direct Settlement System is in place. In the same vein, the Authority also granted an extension of 30-days from 30 September 2021 to current marketing agents who have not submitted applications for licensing but are eligible for coffee brokerage licenses and intend to continue trading.’’
Mr. Shamiah also 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. The Coffee Exchange Regulations were gazetted by the Cabinet Secretary of the National Treasury and Planning on 3 April 2020. 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.
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