CMA sets deadline for coffee brokers to get fresh licences

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Commodities

CMA sets deadline for coffee brokers to get fresh licences


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Capital Markets Authority CEO Wycliffe Shamiah. FILE PHOTO | NMG

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Summary

  • The Capital Markets Authority (CMA) has set a July 1 deadline for coffee brokers to get new licences under rules introduced last year to weed out cartels.
  • CMA had last year allowed the brokers to continue trading under the old rules as they worked towards full compliance of the CMA regulations.

The Capital Markets Authority (CMA) has set a July 1 deadline for coffee brokers to get new licences under rules introduced last year to weed out cartels.

CMA had last year allowed the brokers to continue trading under the old rules as they worked towards full compliance of the CMA regulations.

“In line with Regulation 8 of the Capital Markets (Coffee Exchange) Regulations, 2020 marketing agents intending to operate as coffee brokers at the Nairobi Coffee Exchange should apply to the authority for licensing,” said CMA chief executive Wycliffe Shamiah in a public notice published Tuesday.

“Please take note that only licensed coffee brokers will be allowed to carry the role of coffee brokerage services at the Coffee Exchange from July 1, 2021…Consequently all marketing participants seeking to be licensed to operate as Coffee brokers are requested to submit to the Authority complete applications at the earliest opportunity to facilitate review and subsequent licensing.”

The new rules were supposed to be applied from July last year, but were delayed amid an outcry from stakeholders, including the producers association, saying that the guidelines issued by CMA were inadequate.

There was also a dispute between the CMA and the Agriculture ministry over who had the mandate to extend the old rules past the June 30, 2020 deadline.

Agriculture CS Peter Munya argued that it was his ministry’s mandate because the Crops Act had not been amended, and subsequently threatened to have the regulations repealed on the grounds that the CMA did not involve all stakeholders when formulating the new regulations.

The rules seek to guarantee speedy and transparent payment of proceeds to farmers through a direct settlement system which will be established by a licensed commercial bank. The system is aimed at limiting diversion of sales proceeds.



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