Regulatory Alerts2023-01-20
Public Notice: Licensing of Market Players in Line with the Capital Markets (Coffee Exchange) Regulations, 2020
The Capital Markets Authority has granted the Nairobi Coffee Exchange a three-month extension until April 30, 2023, to achieve full regulatory compliance, including the implementation of a Direct Settlement System. Eligible marketing agents currently lacking coffee brokerage licenses are provided a three-month window to apply for licensing to ensure continued trading access. All market participants must secure these licenses by the April 30, 2023 deadline or forfeit their ability to trade on the Nairobi Coffee Exchange, while current bank guarantees will remain effective during this transition.
PUBLIC NOTICE
LICENSING OF MARKET PLAYERS IN LINE WITH THE CAPITAL MARKETS (COFFEE EXCHANGE) REGULATIONS, 2020
The Capital Markets (Coffee Exchange) Regulations, 2020 granted the Authority the mandate to licence both the coffee brokers and the Nairobi Coffee Exchange. The Capital Markets (Coffee Exchange) Regulations, 2020 granted the Authority the mandate to licence both the coffee brokers and the Nairobi Coffee Exchange. Consequently, the Authority has so far licensed six coffee brokers namely; Meru County Coffee Marketing Agency Limited, United Eastern Kenya Coffee Marketing Company; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency, Murang’a County Coffee Dealers Limited and Embu Coffee Farmers Marketing Agency Limited. Consequently, the Authority has so far licensed six coffee brokers namely; Meru County Coffee Marketing Agency Limited, United Eastern Kenya Coffee Marketing Company; Kipkelion Brokerage Company Limited; Mt. Elgon Coffee Marketing Agency, Murang’a County Coffee Dealers Limited and Embu Coffee Farmers Marketing Agency Limited. To ensure minimal disruption to the coffee sub sector, the Authority is currently at an advanced stage of licensing four applicants as Coffee Brokers. To ensure minimal disruption to the coffee sub sector, the Authority is currently at an advanced stage of licensing four applicants as Coffee Brokers. Further, The Nairobi Coffee Exchange has been granted a three (3) months extension of its in-principle approval to continue operating as a Coffee Exchange until April 30, 2023. Further, The Nairobi Coffee Exchange has been granted a three (3) months extension of its in-principle approval to continue operating as a Coffee Exchange until April 30, 2023. This is to grant the Exchange time to work towards full compliance with the Coffee Exchange Regulations including but not limited to onboarding a Direct Settlement System (DSS) provider. This is to grant the Exchange time to work towards full compliance with the Coffee Exchange Regulations including but not limited to onboarding a Direct Settlement System (DSS) provider. Additionally, existing marketing agents who have not submitted applications for licensing but are eligible for coffee brokerage licences and intend to continue trading are hereby given three (3) Months to apply for licensing as coffee brokers under the Coffee Exchange Regulations. Additionally, existing marketing agents who have not submitted applications for licensing but are eligible for coffee brokerage licences and intend to continue trading are hereby given three (3) Months to apply for licensing as coffee brokers under the Coffee Exchange Regulations. This transition period is to allow marketing agents to meet their contractual obligations with respect to coffee being held for trading on behalf of farmers. This transition period is to allow marketing agents to meet their contractual obligations with respect to coffee being held for trading on behalf of farmers. Marketing agents who will not have been granted coffee broker licences by April 30, 2023 will not access the trading floor for purposes of providing coffee brokerage services (sale coffee on behalf of growers) at the Nairobi Coffee Exchange. Marketing agents who will not have been granted coffee broker licences by April 30, 2023 will not access the trading floor for purposes of providing coffee brokerage services (sale coffee on behalf of growers) at the Nairobi Coffee Exchange. Further, the market is hereby notified that the current bank guarantees by the different players shall continue in operation pending onboarding of the Direct Settlement System provider by the Nairobi Coffee Exchange. Further, the market is hereby notified that the current bank guarantees by the different players shall continue in operation pending onboarding of the Direct Settlement System provider by the Nairobi Coffee Exchange.