State to deal with firms distorting coffee trading
The National Government has warned coffee value chain players suspected of flouting the established coffee trading protocols at the Nairobi Coffee Exchange (NCE), threatening to revoke their licenses.
Simon Chelugui, the Cabinet Secretary for Cooperatives and Micro and Small Enterprise, reiterated in a recent interview with Business Hub the government’s proactive stance in closely monitoring trading activities under the new regulatory framework to prevent any disruptions.
He revealed that his ministry had convened a meeting with key stakeholders, including the Capital Markets Authority (CMA) and NCE officials, to address concerns raised and ensure the full implementation of the regulatory protocols.
Adhering to new regime
“Our commitment is to ensure the reforms in the coffee industry are implemented to the latter,” said Chelugui. He emphasized the importance for all value chain players to equip themselves with the necessary tools and adhere to the new marketing regime to instill confidence among farmers.
The Kenya Coffee Producers Association (KCPA) had raised concerns about delays in farmers’ payments despite the introduction of the Direct Settlement System (DSS).
Lisper Ndung’u, the acting CEO of NCE, attributed the invoicing interruptions to delays downstream, particularly caused by millers’ failure to capture data. Ndung’u emphasized the need for millers to fulfill their role efficiently to facilitate prompt settlements.
