Commodities

Embu broker cleared to trade coffee

coffee

A farmer in Tuiyo, Kapseret Constituency of Uasin Gishu County during harvesting of ripe berries on September 25, 2021. PHOTO | JARED NYATAYA | NMG

geraldandae

Summary

  • The CMA has cleared Embu Coffee Farmers Marketing Agency to operate as a coffee broker at the Nairobi Coffee Exchange (NCE) in line with the Capital Markets (Coffee Exchange) Regulations, 2020.
  • It joins Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited.
  • It joins Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited.

The Capital Markets Authority (CMA) has granted a full licence to one more coffee broker, bringing the number of those permitted to trade at the auction to five.

The CMA has cleared Embu Coffee Farmers Marketing Agency to operate as a coffee broker at the Nairobi Coffee Exchange (NCE) in line with the Capital Markets (Coffee Exchange) Regulations, 2020.

It joins Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency Limited, and United Eastern Kenya Coffee Marketing Company Limited.

CMA Chief Executive Officer, Wyckliffe Shamiah said the regulator continues to engage relevant stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction toward full implementation of the regulations.

Advisory opinion

The granting of the licence, which is part of the requirements put forth by the new coffee regulations, comes even as the ones that were approved earlier are yet to be allowed to trade at the auction.

The NCE last year declined to admit the millers that had been licensed at the auction, pointing out that it was seeking an advisory opinion from the government after the old trading regulations were extended to July 2022.

The lack of Direct Settlement System (DSS) at the auction is one of the reasons the implementation of the new coffee regulations has been delayed to kick off nearly two years since they were adopted.

The DSS is being replaced by the current guarantee system, which marketers have to deposit with NCE before they are allowed to trade at the auction.

The CMA had said last year said that the current bank guarantee held by traders will continue until the Nairobi Coffee Exchange appoints a bank that will offer the DSS in line with provisions of the regulations.

The regulations, which were gazetted last year, gave the CMA the mandate to license the coffee exchange and brokers.

However, Agriculture Cabinet Secretary Peter Munya opposed the role of the CMA in the coffee auction, saying it should be done by the Agriculture and Food Authority.

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