Capital Markets Authority (CMA) has directed Nairobi Coffee Exchange to admit five coffee brokers following their licensing to the trading floor.
CMA chief executive Wyckliffe Shamiah says the licenses will allow the brokers to participate in coffee auctions at the NCE commencing September 7, 2021.
“The duly licensed coffee brokers communicated the urgency of allocation of lots range and brokerage codes to NCE to enable them to participate at the coffee auctions from the month of September 2021,” said Shamiah.
The five brokers include 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.
CMA issued the first set of licenses to five coffee brokers on June 28, this year, in line with the Capital Markets (coffee exchange) regulations, 2020.
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Among the five brokers is Meru County Coffee Marketing Agency ltd which was granted a full coffee broker licence while the other four were granted conditional licences.
The other four are Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited and United Eastern Kenya Coffee Marketing Company Limited.
Trading of coffee from regionl countries by the NCE is set to boost revenue and increase productivity.
The Coffee Exchange Regulations were gazetted by the Cabinet Secretary of the National Treasury and Planning in April last year.
The Authority is mandated to regulate the spot commodity markets in Kenya and in particular, the coffee commodity market according to Section 11(3) of the Capital Markets Act.
CMA is working with other state and non-state stakeholders through the coordination of the Coffee Subsector Reforms Implementation Standing Committee (CSRISC) which is domiciled in the Office of the President to support implementation of reforms in the coffee subsector.
The exchange is looking to follow the model of the Mombasa Tea Auction, which trades tea from more than 10 African countries.
