Tuesday, Aug 4, 2020
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Coffee farmers now want new regulations suspended

Coffee farmers now want new regulations suspended

Coffee farmers now want the government to suspend the implementation of the Capital Markets (Coffee Exchange) regulations 2020 which took effect on July 1.

According to the Kenya Coffee Producers Association (KCPA), the poor transition from the previous general regulations 2019 to the new rules has cost them millions of shillings in lost coffee sales after the Nairobi Coffee Exchange failed to open on June 30.

The farmers now want the auction to continue operating under the old regulations as the stakeholders work out an infrastructure for the implementation of the new regulations.

In addition, KCPA has faulted the government for not involving the farmers in the decision and have now threatened to take to the streets should their demands be ignored.

To facilitate transitional arrangements in the coffee sector, the CMA on June 5 issued guidance to support direct stakeholders after a month’s break.

The markets regulator said it has allowed the older rules to be used pending the creation of the direct settlement system (DSS), with marketers required to remit the funds to the cooperative societies as they have been doing under the General Coffee Regulations.

“CMA directs that the existing payment mechanisms be utilised in the interim period as the DSS is being put in place. Details of direct coffee sales will be reported to the Nairobi Coffee Exchange,” said acting CMA chief executive Wycliffe Shamiah.

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