The licensed brokers want Parliament to intervene and ensure marketing licences issued under the revoked, Coffee (General) Rules 2002 or any legal notice extending their operations are cancelled.
New regulations that have been put in place are supposed to minimise farmers’ risk along the coffee value chain by empowering them to control their harvested crop and its proceeds.
Five coffee brokers recently licensed by the Capital Markets Authority (CMA) are seeking Parliament’s intervention over a standoff with the Nairobi Coffee Exchange that has seen them blocked from trading at the weekly auction.
The five firms—United Eastern Kenya Coffee Marketing Company, Meru County Coffee Marketing Agency Limited, Kipkelion Brokerage Company Limited, Mt Elgon Coffee Marketing Agency and Muranga County Coffee Dealers—yesterday handed a petition to Parliament seeking its involvement in the matter.
“There no policy or law that supports the Nairobi Coffee Exchange (NCE)’s rejection to admit a duly licensed brokerage firms. NCE must admit the duly licensed brokerage firms with immediate effect in compliance with the law,” say the firms in the joint petition.
The five brokers, who belong to National Coffee Co-operative Federation of Kenya, received CMA clearance, but NCE has refused to admit them to the trading floor, citing the need to get nod from the Ministry of Agriculture to do so.
The licensed brokers want Parliament to intervene and ensure marketing licences issued under the revoked, Coffee (General) Rules 2002 or any legal notice extending their operations are cancelled.
New regulations that have been put in place are supposed to minimise farmers’ risk along the coffee value chain by empowering them to control their harvested crop and its proceeds.
The millers are also accusing NCE of operating without a board and refusal to select a provider of Direct Settlement System (DSS).
DSS is a banking facility provided by commercial banks for clearing and settlement of coffee sales proceeds in an auction.
CMA recently directed NCE to admit the brokerage firms to the trading floor starting Tuesday next week in line with the Regulation 33 (1) of the Coffee Exchange Regulations, 2020.
Machakos based United Eastern Kenya Coffee Marketing Company is also considering suing the NCE for failure to allow it to trade.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
