The Capital Markets Authority (CMA) has extended provisional licences for two coffee marketers by six months and issued full permits to two others.
CMA has argued that the law gives it the mandate to regulate the coffee sector, following the amendment of the capital Markets Act last year.
The Coffee Exchange Regulations were gazetted by the Cabinet Secretary of the National Treasury and Planning on 3 April 2020.
The Capital Markets Authority (CMA) has extended provisional licences for two coffee marketers by six months and issued full permits to two others even as their trading at the Nairobi Coffee Exchange(NCE) remains uncertain.
Kipkelion Brokerage Company Limited and Murang’a County Coffee Dealers Company now have full licences while Mt Elgon Coffee Marketing Agency Limited and United Eastern Kenya Coffee Marketing Company Limited had their provisional licences extended to April 30, 2022.
The NCE refused to admit the five CMA licensees to the trading floor, saying it is awaiting an advisory from the Ministry of Agriculture—which is opposed to having the CMA oversee the auction.
“The Authority continues to work with all stakeholders in the coffee sub-sector to ensure that various players in the value chain are brought into full compliance with the Coffee Exchange Regulations to ensure the full benefit of the reform agenda is realised,’’ said CMA chief executive Wyckliffe Shamiah.
The new coffee regulations were meant to take effect on July 1 but were postponed to the end of the year to allow more time for preparations.
However, there has been confusion over the implementation of the new laws as the Ministry of Agriculture and CMA battle over who has control of the crop.
The CMA has argued that the law gives it the mandate to regulate the coffee sector, following the amendment of the capital Markets Act last year, while Mr Munya has insisted the function vests with the Agriculture and Food Authority since changes were not made to the Crops Act.
The Capital Markets (Coffee Exchange) Regulations 2020, which were gazetted in April, gave the authority the mandate to license the coffee exchange and brokers.
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 3 April 2020.
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.
