The Capital Markets Authority (CMA) has licensed four more coffee brokers in an effort to deepen coffee sub-sector reform.
Kinya Coffee Marketing Agency Limited has received a full license, while Kiambu Coffee Marketing Company Limited, Bungoma Union Marketing Agency Limited, and Meru South Coffee Marketing Company Limited have received provisional licenses for 6 months.
The coffee brokers were licensed under the Capital Markets (Coffee Exchange) Regulations, 2020.
This brings the number of coffee brokers so far licensed by CMA to ten.
Other coffee brokers holding valid licenses earlier issued by CMA are United Eastern Kenya Coffee Marketing Company; Meru County Coffee Marketing Agency Limited; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency; Murang’a County Coffee Dealers Limited; and Embu Coffee Farmers Marketing Agency Limited.
These developments follow the extension of provisional approval given by the CMA to the Nairobi Coffee Exchange (NCE) to operate as a coffee exchange from December 31, 2022, to April 30, 2023, to facilitate the transition and compliance with the Capital Markets (Coffee Exchange) Regulations, 2020.
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“The momentum of the reform agenda needs to be sustained to ensure 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, benefiting the coffee farmers,” said CMA Chief Executive Officer, Wyckliffe Shamiah.
The NCE is expected to immediately admit entities holding valid coffee broker licenses issued by CMA to the trading floor.
The Agriculture and Food Authority also withdrew the June 2022 amendments to the Crops (Coffee) (General) Regulations, 2019 hence harmonization with the Capital Markets (Coffee Exchange) Regulations, 2020 thus the current positive outlook for coffee subsector reforms.
The Capital Markets Act was amended in 2016 to give CMA the authority to regulate spot commodity markets, including the coffee market in Kenya. CMA oversees the regulation of structured spot commodity markets, specifically the coffee market, as stated in Section 11(3) of the Capital Markets Act.
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