As it changes to The Coffee Exchange, Nairobi Coffee Exchange (NCE) will soon come under the Capital Markets Authority’s (CMA) oversight.
Kenya intends to create a marketing and trading system at the Nairobi Coffee Exchange that encourages equitable, transparent trading activities. Part of this agenda includes the full implementation of the Capital Markets (Coffee Exchange) Regulations.
In addition, it aims to improve price discovery and offers coffee farmers significant advantages.
Since then, the CMA Act has been amended to give the regulator the authority to control spot commodity markets, such as Kenya’s coffee commodity market.
This development ends a protracted dispute and uncertainty about the CMA and Coffee Directorate’s mandates and who between them has the final say on issues pertaining to the NCE’s operations.
When a task force headed by Hon. Simon Chelugui, Cabinet Secretary for Cooperatives and Micro, Small, and Medium-sized Enterprises (MSMEs), concludes the Nairobi Coffee Exchange transition process, the CMA will take over as the exchange’s regulator. The taskforce’s assignment is to oversee the Nairobi Coffee Exchange’s rebranding as The Coffee Exchange.
Augustus Kipkoech Chepkurwo, Peter Githinji Njuki, Kenneth Gitonga, and six other people are members.
The taskforce will remain in operation for a full year, ending on December 7, 2024, with the option of an extension if needed.
It will have its headquarters at the ministry’s Social Security House.
A secretariat has already been established, tasked with conducting research, creating and carrying out the team’s programs and activities, interpreting policies, producing reports, and providing pertinent background information.
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Credit: Jackson Okoth
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