CMA Sets Sets New Deadline for Coffee Brokers Licensing
The Capital Markets Authority (CMA) has set a July 1 deadline for coffee brokers to get new licences under rules introduced last year to get rid of cartels.
In a public notice issued on Tuesday, the regulatory board said, “In line with Regulation 8 of the Capital Markets (Coffee Exchange) Regulations, 2020 marketing agents intending to operate as coffee brokers at the Nairobi Coffee Exchange should apply to the authority for licensing.”
Earlier last year, CMA allowed the brokers to continue trading under the old rules as they worked towards full compliance with the CMA regulations.
In the notice issued , they stated that only licensed coffee brokers will be allowed to carry the role of coffee brokerage services after the deadline. They further added that all marketing participants seeking to be licensed to operate as coffee brokers should submit to the Authority complete applications as soon as possible to facilitate review and subsequent licensing.
The new rules were supposed to be applied from July last year when CMA issued a notice of guidelines on transitional arrangements for the coffee sector players in line with their policies. However, the implementation was delayed amid an outcry from stakeholders, including the producers association, saying that CMA’s guidelines were inadequate.
However, the Authority has assured coffee brokers that the rules seek to guarantee speedy and transparent payment of proceeds to farmers through a direct settlement system that a licensed commercial bank will establish. The course is aimed at limiting the diversion of sales proceeds.