The Capital Markets Authority (CMA) will start to regulate the sale of coffee at the Nairobi Coffee Exchange, a move that seeks to curb cartels in the sector.
According to draft regulations published by Treasury CS, Ukur Yatani, the Agriculture and Food Authority’s Coffee Directorate will cease to regulate the coffee sales, including the weekly auctions in Nairobi.
The new law tasks the Capital Markets Authority with licensing brokers and other companies interested in trading coffee.
Furthermore, a licensed commercial bank, selected by a coffee trading company, will establish a direct settlement program that will ensure fast and transparent payment of proceeds from the sales. Still, this is subject to approval by the CMA.
Coffee trading companies will also be required to establish a direct link between their systems with the CMA’s, so as to enhance transparency in their transactions. The companies will have to disseminate market information with every coffee auction and to provide an analysis of the daily, weekly and monthly performance.