The Capital Markets Authority (CMA) has extended the in-principle approval granted to the Nairobi Coffee Exchange (NCE) to continue operating as a coffee exchange to April 30, 2023.
Initially, it had been extended to December 31, 2022. This is expected to give impetus to the ongoing coffee sub-sector reforms.
The CMA chief executive officer, Wyckliffe Shamiah, said that the key requirements for NCE stipulated in the Coffee Exchange Regulations include; on boarding a Direct Settlement System provider to expedite and enhance transparency in the settlement of coffee sale proceeds.
Other roles include submission of trading rules aligned to the Coffee Exchange Regulations to guide the trading operations at the NCE; and strengthening the governance structure by reconstituting the NCE board to comply with the Capital Markets (Corporate Governance) (Market Intermediaries) Regulations, 2011.
Currently, brokers holding valid licenses are United Eastern Kenya Coffee Marketing Company; Meru County Coffee Marketing Agency Limited; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency; Murang’a County Coffee Dealers Limited; and Embu Coffee Farmers Marketing Agency Limited.
“CMA continues to engage all stakeholders in the coffee sub-sector to ensure that the momentum of the reform agenda is sustained and gains traction towards full implementation of the Coffee Exchange Regulations,” Shamiah said.
The Capital Markets Act was amended in 2016, allowing CMA to regulate spot commodity markets, including the coffee commodity market.
CMA regulates the structured spot commodity markets in Kenya and in particular, the coffee commodity market according to Section 11(3) of the Capital Markets Act.
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