Five companies have received the market regulator’s nod to start offering brokerage services at the Nairobi Coffee Exchange (NCE) starting July 1.
The approval, which is in line with the Capital Markets (Coffee Exchange) Regulations, 2020 is part of the ongoing reforms in the coffee industry.
However, only Meru County Coffee Marketing Agency Ltd has been granted a full coffee broker license as the other four will be expected to transition into full compliance in the next three months.
The four firms that have received a conditional license are: Kipkelion Brokerage Company Ltd, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Ltd and United Eastern Kenya Coffee Marketing Company Ltd.
“These conditional licenses are our commitment to ensuring that the trading of coffee continues at the NCE without disruption even beyond the 30 June 2021 deadline,” said the Capital Markets Authority (CMA) CEO Wyckliffe Shamiah.
The markets regulator is tasked with monitoring the spot commodity markets in Kenya and in particular, the coffee commodity market according to Section 11(3) of the Capital Markets Act.
The Coffee Exchange Regulations were gazetted by the Treasury Cabinet Secretary in April last year.
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 with effect from July 1, 2020.
However, the Coffee Exchange Regulations provided for a transitional period of one year for the NCE to come into full compliance.