Broker Embu licensed to trade coffee

Merchandise

Broker Embu licensed to trade coffee


A farmer from Tuiyo, Kapseret ward of Uasin Gishu County during the harvest of ripe berries on September 25, 2021. PHOTO | JARED NYATAYA | NMG

geraldandae

Summary

  • The CMA has authorized the Embu Coffee Farmers Marketing Agency to operate as a coffee broker on the Nairobi Coffee Exchange (NCE) in accordance with the Capital Markets (Coffee Exchange) Regulations 2020.
  • He 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.
  • He 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 license to another coffee broker, increasing the number of people allowed to trade at the auction to five.

The CMA has authorized the Embu Coffee Farmers Marketing Agency to operate as a coffee broker on the Nairobi Coffee Exchange (NCE) in accordance with the Capital Markets (Coffee Exchange) Regulations 2020.

He 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 Wyckliffe Shamiah said the regulator continues to engage relevant stakeholders in the coffee sub-sector to ensure the momentum of the reform agenda is maintained and gains momentum towards the full implementation of the regulations.

Advisory opinion

The granting of the licence, which is part of the requirements imposed by the new coffee regulations, comes even as those previously approved are not yet allowed to be marketed at auction.

Last year, the RCE refused to admit the millers who had been cleared to the auction, stressing that it was seeking an advisory opinion from the government after the old trade rules were extended until July 2022.

The lack of an auction-based Direct Settlement System (DSS) is one of the reasons why the implementation of the new coffee regulations has been delayed for almost two years since its adoption.

The DSS is replaced by the current Collateral System, which traders must file with NCE before being allowed to trade at the auction.

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

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

However, Agriculture Cabinet Secretary Peter Munya objected to the CMA’s role in the coffee auction, saying it should be done by the Agriculture and Food Authority. .

[email protected]

About the author