The Capital Markets Authority (CMA) says the new deadline for coffee brokers to get new licences has been set to July 1, 2021.
Currently, the brokers are using the old payment rules in a bid to facilitate transitional arrangements in the sector.
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.”
The regulations were gazetted by the cabinet secretary for the National Treasury and Planning on April 3 2020.
The two regulations are Capital Markets (Commodities Markets) Regulations 2020 and Capital Markets (Coffee Exchange), Regulations 2020.
They are aimed at enhancing food security and making the commodities market competitive, improving efficiencies in the value chain and meeting international standards.
The regulations provide for the licensing of commodity exchanges, commodity brokers and approval of clearinghouses.
In addition, they provide for the governance, trading, and conduct of the business of commodity exchanges and commodity brokers, including the disclosure, compliance and reporting requirements.