CMA Issues Licenses to 5 Coffee Brokers
The Capital Markets Authority (CMA) has issued the first set of licenses to five coffee brokers in line with the Capital Markets (Coffee Exchange) Regulations, 2020, which will allow brokers to carry out the role of coffee brokerage services at the Nairobi Coffee Exchange (NCE) with effect from 1 July 2021.
Meru County Coffee Marketing Agency Limited has been granted a full coffee broker licence whereas other applicants for the coffee broker licence, namely: Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Company, Mt. Elgon Coffee Marketing Agency Limited and United Eastern Kenya Coffee Marketing Company Limited have been granted conditional licences.
The firms are expected to come into full compliance with the requirements of the Coffee Exchange Regulations within the next three months.
Speaking on the approval, CMA Chief Executive Wyckliffe Shamiah noted,
“The Authority is fully supportive of the reforms in the coffee subsector 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.’ 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.” CMA Chief Executive Wyckliffe Shamiah
CMA granted a provisional license to NCE on 1 July 2020 to continue operating in its existing form as it worked towards full compliance with the Coffee Exchange Regulations.
Mr Wyckliffe Shamiah also noted that NCE’s in-principal approval has since been extended to 31 December 2021 to enable the Coffee Exchange to come into full compliance with the regulatory requirements.
NCE is expected to competitively select a commercial bank to provide the direct settlement system for clearing and settlement of coffee proceeds during this period.