CMA clears five coffee brokers as new trading era dawns

The Capital Markets Authority (CMA) has cleared five brokers to carry out the role of coffee brokerage services at the Nairobi Coffee Exchange (NCE) from July 1.

The new clearance comes ahead of a new dawn for coffee trading in which the markets regulator set to supervise trading and license market participants.

The five include Meru County Coffee Marketing Agency which has been granted a full coffee broker license.

Four others, Kipkelion Brokerage, Murang’a County Coffee Dealers, Mt. Elgon Coffee Marketing Agency and the United Eastern Kenya Coffee Marketing company who have been granted conditional licenses pending the full compliance to requirements.

At the same time, the CMA has granted a provisional license to the NCE which will continue operating in its existing form as it also works towards full compliance with the Coffee Exchange Regulations.

The NCE is expected to select a commercial bank to provide direct settlement system for clearing and settlement of trade proceeds.

The coffee exchange has a one year window to fall into compliance with Coffee Exchange Regulations.

“The Authority is fully supportive of the reforms in the coffee sub-sector and is ready to execute its mandate as envisaged in the regulatory framework. As a result, these conditional licenses are our commitment to ensuring that the trading of coffee continues at the NCE without disruption even beyond the 30 June 2021 deadline,” CMA Chief Executive Officer Wycliffe Shamiah.

“In order to ensure that there is no disruption in the coffee value chain, the Authority has granted an extension of 3 months to the Marketing Agents currently trading at NSE for them to apply for the coffee broker licence.”