NCE admits coffee firms to auction

New firms that had been licensed by the Capital Markets Authority (CMA) as coffee brokers can now trade at the Nairobi Coffee Exchange (NCE).

The development follows admission to the NCE trading floor last week to eight coffee brokerage companies after being issued with key requirements for trading at the auction.

“Pursuant to the CMA coffee exchange regulations, 2002 and crops coffee general regulations, 2019 and your subsequent licensing by the CMA as a broker, I hereby wish to issue you with the lots range for purposes of catalogue preparation. The range will be between lot numbers 3701 and 3900. The participation coffee will be created upon presentation of the 1st catalogue,” read a letter addressed to one of the coffee brokers.

Broker licence

The letter seen by the Business Hub said the companies must however fulfil relevant conditions, for example, pay broker licence and registration fee of Sh75,000 before starting trading.

NCE chief executive officer Daniel Mbithi said the firms must also submit a letter of introduction with a registered name, Kenya Revenue Authority PIN, bank details for payments, and licensed warehouse details indicating where coffee will be offered.

Admission of the coffee brokerage companies to the NCE trading floor follows a directive issued on February 23, 2023, by the CMA CEO Wyckliffe Shamiah.

The CMA boss said the authority had received complaints from licensed coffee brokers that the NCE had failed to admit them to the trading floor contrary to the lawful directive issued by the Authority on January 20, 2023.

“By April 30, every infrastructure required will be ready.  Meanwhile, as brokerage companies, we will link with the NCE management to help us understand the trading floor. But so far we are eager to offer farmers coffee for trading at the NCE. This is a good move and conforms to the reforms spirit by the Government,” said National Coffee Cooperative Union Limited (NACCU)  chairman Francis Ngone on phone yesterday.