CMA extends provisional licenses to 4 coffee brokers for 30 days
The Capital Markets Authority (CMA) has extended the provisional licenses granted to four coffee brokers by a further 30 days from September 30, 2021, in line with the 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.
In a statement Friday, CMA Chief Executive Officer Wyckliffe Shamiah said, the authority will continue to engage relevant stakeholders in the coffee sub-sector.
This, the CMA says will ensure that the momentum of the reform agenda is sustained and gains traction towards full implementation of the Coffee Exchange Regulations.
“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,’’ said Shamiah.
The four coffee brokers include 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.
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On August 23, the Authority directed Nairobi Coffee Exchange (NCE) to admit five coffee brokers following their licensing to the trading floor to allow the brokers to participate in coffee auctions at the NCE.
The five brokers are Meru County Coffee Marketing Agency Ltd, United Eastern Kenya Coffee Marketing Company, Kipkelion Brokerage Company Ltd, Mt. Elgon Coffee Marketing Agency and Murang’a County Coffee Dealers Ltd.
Mr. Shamiah further said that extending of provisional licenses is intended to ensure the marketing and trading mechanism is transparent and enhances price discovery, ultimately benefiting the coffee farmers, who will receive coffee sale proceeds efficiently once the Direct Settlement System is in place.
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 April 3, 2020.
The decision by the Authority comes barely four weeks after the National Assembly’s committee on Agriculture summoned Agriculture CS Peter Munya to explain why the Coffee Cherry Fund has not been disbursed to farmers as the Farmers in Kirinyaga County demands for the biggest say at the Coffee Board of Kenya, under the proposed coffee Bill 2021.