The Capital Markets Authority (CMA) has greenlit new trading rules for 2024 at the Nairobi Coffee Exchange (NCE).
These regulations aim to streamline operations and create a fair playing field for all licensed participants in the coffee value chain.
Key Changes to the NCE Trading Rules 2024
The rules have introduced penalties for violations to deter misconduct during coffee auctions. Users, brokers, and buyers who break the rules risk losing their trading licenses.
Mandatory implementation of the Direct Settlement System (DSS) for coffee transaction settlements. This ensures a dedicated account for managing coffee proceeds and facilitates timely payments to growers.
Buyers and roasters must settle payments by the designated “prompt date.” Failure to do so will result in the automatic suspension from participating in future auctions and additional penalties for late payments.
NCE CEO Lisper Ndung’u emphasized that the CMA approved the new rules after extensive consultations with stakeholders across the coffee value chain.
The notice dated July 15, highlights the rules’ foundation in existing legal frameworks, including the Crops (Coffee) (General) Regulations, 2019 and Capital Markets (Coffee Exchange) Regulations 2020.
