NCE Approves Coffee Companies for 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).

Following the issuance of important requirements for trading at the auction, eight coffee brokerage companies were admitted to the NCE trading floor last week.

“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.

The firms must also provide a letter of introduction with a registered name, Kenya Revenue Authority PIN, bank details for payments, and licensed warehouse details specifying where coffee will be sold, according to NCE Chief Executive Officer Daniel Mbithi.

After an order given by CMA CEO Wyckliffe Shamiah on February 23, 2023, the coffee brokerage companies have been allowed access to the NCE trading floor.

Licensed coffee brokers had complained to the authority that the NCE had refused to let them onto the trading floor in violation of the legitimate direction issued by the Authority on January 20, 2023, according to the CMA boss.

“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.