The Capital Markets Authority (CMA) has granted a license to Kirinyaga Slopes Coffee Brokerage Company Limited, designating it as an authorised broker at the auction.
This development is a major boost to the auction, as the company’s establishment is backed by the Kirinyaga County Cooperative Union, comprising 14 cooperative societies.
Wyckliffe Shamiah, the CEO of CMA, highlighted the need to maintain the momentum of the reform agenda, ensuring the full implementation of the Capital Markets (Coffee Exchange) Regulations.
Mr Shamiah said the admission of more players at the auction aims to bolster fair trade practices, transparency, and price discovery within the Nairobi Coffee Exchange, ultimately benefiting coffee farmers.
“This is expected to ensure the marketing and trading mechanism at the Nairobi Coffee Exchange promotes fair trade, is transparent and enhances price discovery, ultimately benefitting the coffee farmers,’’ said Mr Shamiah.
The Capital Markets Act underwent a significant revision in 2016, explicitly granting CMA the authority to regulate spot commodity markets, including the coffee commodity market in Kenya.
In accordance with Section 11(3) of the Capital Markets Act, CMA has taken on the responsibility of overseeing structured spot commodity markets, with a particular focus on the coffee commodity market.
With the new addition, the total number of licensed coffee brokers at the Nairobi Coffee Exchange now stands at 14.
Among the licensed coffee brokers are the Meru County Coffee Marketing Agency Limited, Kipkelion Brokerage Company Limited, Murang’a County Coffee Dealers Limited, United Eastern Kenya Coffee Marketing Company Limited, Mt. Elgon Coffee Marketing Agency, Embu Coffee Farmers Marketing Agency Limited.
Others are Kinya Coffee Marketing Agency Limited, Alliance Berries Limited, Bungoma Union Marketing Agency Limited, New Kenya Planters Co-operative Union PLC (New KPCU), KCCE Marketing Agency Limited, Meru South Coffee Marketing Company Limited, and Baringo Kawa Brokerage Company Limited.