The approval which has been extended from December 31 2022 was granted in accordance with the Capital Markets (Coffee Exchange) Regulations, 2020, with the understanding that NCE will work towards full compliance with the Regulations.
The extension is expected to give impetus to the ongoing coffee sub-sector reforms.
Other requirements for NCE stipulated in the Coffee Exchange Regulations include; onboarding a direct settlement system provider to expedite and enhance transparency in settlement of coffee sale proceeds; submission of trading rules aligned to the Coffee Exchange Regulations to guide the trading operations at the NCE; and strengthening the governance structure by reconstituting the NCE board to comply with the Capital Markets Regulations, 2011.
The brokers holding valid licenses are; United Eastern Kenya Coffee Marketing Company; Meru County Coffee Marketing Agency Limited; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency; Murang’a County Coffee Dealers Limited; and Embu Coffee Farmers Marketing Agency Limited.
“CMA continues to engage all stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction towards full implementation of the Coffee Exchange Regulations. This is expected to ensure the marketing and trading mechanism at the Coffee Exchange promotes fair trade, is transparent and enhances price discovery, ultimately benefitting the coffee farmers,” said Shamiah.
The CMA Chief Executive Officer welcomed the recent decision by the Agriculture and Food Authority to withdraw the amendments to the Crops (Coffee) (General) Regulations, 2019 which had slowed down the reform process by removing CMA from regulating the marketing and trading aspects at the Coffee Exchange.