New dealers await call to start trading
Four firms have been licensed as coffee brokers by the Capital Markets Authority (CMA) but will wait until May to start trading at Nairobi Coffee Exchange (NCE), as the government moves to deepen reforms in the sector.
The move increases the number of brokers licensed by CMA to 10 under the Capital Markets (Coffee Exchange) Regulations, 2020, which includes six that were given a nod two years ago.
The six companies earlier issued with valid broker licences by CMA have however not started trading at the NCE, as the latter declined to allocate them the lots range and brokers’ code, which are key requirements for any player licensed to market coffee at the auction.
Newly licensed firms include Kinya Coffee Marketing Agency Limited which was granted a full license. Kiambu Coffee Marketing Company Limited, Bungoma Union Marketing Agency Limited and Meru South Coffee Marketing Company Limited were granted in-principle approved licenses, for six months.
Room for transition
CMA CEO Wyckliffe Shamiah said in a statement yesterday that the new licensing comes on the back of an extension of the “in-principle approval granted to the NCE”, to continue operating as a coffee exchange from December 31, 2022 to April 30, 2023.
This, he added, is designed to give room for transition and progression towards full regulatory compliance with the Capital Markets (Coffee Exchange) Regulations, 2020.
National Coffee Cooperative Union Limited (NACCU) chairman Francis Ngone said that the licensed companies are eager to start trading as outlined by the CMA and NCE management is facilitating for necessary infrastructure.
“We are in the process of being issued with key requirements and thus by April 30 every infrastructure required will be ready,” said Ngone on phone yesterday.
But even as CMA continues licensing local coffee brokers, current commercial marketing agents majority of which are subsidiaries of international companies operating at NCE, are yet to apply at CMA.
Speaking to People Daily on phone, NCE chief executive officer Daniel Mbithi confirmed that the process has been initiated to allow the companies at the auction hall.
“We are in consultations with CMA and soon we will agree on the way forward,” said Mbithi.