Representatives of five recently-licensed coffee brokerage firms yesterday petitioned the National Assembly to sort out disputes at the Nairobi auction to enable them start trading.

In the petition to Parliament and shared to media yesterday at a Nairobi hotel, the brokers said NCE should immediately provide them the required support as they seek to start trading.

“NCE must admit the duly licensed brokerage firms with immediate effect in compliance with the law,” read a statement by the brokers.

They put the Agriculture ministry on the spot for “disregarding the new coffee reforms” saying the move is sabotaging agencies charged with implementation of changes in the sector.

Settlement system

The statement by the brokers says NCE is operating without a board making its incorporation a legal concern.

Further, they called upon the exchange to select a provider of Direct Settlement System (DSS).

A DSS is a banking facility provided by commercial banks and meant to enhance transparency and timely clearing and settlement of coffee sale proceeds to the growers and service providers leveraging the Central Bank.

National Coffee Federation of Kenya chair Francis Ngone said the Capital Markets(Coffee Exchange) Regulations, 2020 must be implemented to the letter. 

“That the Legal Notice No. 104 and any subsequent notice issued by the CS, Agriculture, be declared unlawful since it was not subjected to public participation and not approved by the National Assembly and Senate,” he said.

He said the ministry is deepening confusion in coffee marketing by disregarding regulations approved after a rigorous process.

“These regulations for the first time in the history of Kenya have minimised farmers risk along the coffee value chains and empowered them to control their coffee and it’s proceeds despite opposition by vested interested,” Ngone said.

Regulations

Murang’a Woman Representative, Sabina Chege urged NCE to admit them in compliance with the law. 

“As it is, foreigners are trading but our own people are not trading,” she said, adding that this situation is making Kenya look bad.

“Marketing licenses issued under the revoked, Coffee (General) Rules 2002 or any Legal Notice extending their operation be cancelled,” charged the brokers.

On July 1, 2021, CMA granted Meru County Coffee Marketing Agency a full coffee broker was licensed after fulfilling the stipulated conditions while Kipkelion Brokerage Company, Murang’a County Coffee Dealers Company, Mt Elgon Coffee Marketing Agency and United Eastern Kenya Coffee Marketing Company Ltd issued with conditional licences.