Kenya: Capital Markets Authority Grants Licenses to 5 Coffee Brokers

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.

The Authority 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. Shamiah added that the 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.

The Authority continues to work with the National Treasury and Planning, the Central Bank of Kenya, the Ministry of Agriculture, Livestock, Fisheries and Cooperative, Agriculture and Food Authority, NCE, the State Department for Trade, Council of Governors, County Governments, Coffee Cooperatives ,Growers, Unions, the Coffee Millers and Marketers, the Coffee Traders and other stakeholders through the coordination of the Coffee Subsector Reforms Implementation Standing Committee (CSRISC) which is domiciled in the Office of the President to support implementation of reforms in the coffee subsector.