Mount Elgon Coffee Marketing Agency Ltd and United Eastern Kenya Coffee Marketing Company Ltd have received the full backing of the Capital Markets Authority (CMA) to trade in coffee.
The move, which is in line with the Capital Markets (Coffee Exchange) Regulations 2020, grants the two coffee brokers full licenses to trade in the produce.
CMA Chief Executive Officer, 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 at the Coffee Exchange promotes fair trade, 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,” he added.
Shamiah also noted that the current bank guarantees by the different players shall continue in operation pending competitive selection of a commercial bank by the Nairobi Coffee Exchange to offer the Direct Settlement System in line with provisions of the Coffee Exchange Regulations.
In October, CMA extended provisional permits for four coffee brokers including Kipkelion Brokerage Company Ltd, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Ltd and United Eastern Kenya Coffee Marketing Company Ltd for a month to allow the watchdog finalize the brokerages’ full compliance with requisite regulations.
According to the coffee exchange regulations together with the crops coffee general regulations 2019, the NCE and coffee brokers are to be licensed and supervised by the CMA beginning July 1, 2020.