The coffee auction aborted Wednesday after marketers failed to submit relevant trading data, citing confusion over the Capital Markets Authority (CMA) statement issued on Monday.
Marketers did not feel that the guidelines are adequate and have written to the CMA seeking clarification before they resume trading at the Nairobi Coffee Exchange (NCE).
The CMA said it is working with all stakeholders in the sector to resolve the issue and have trading resume at the auction.
The coffee auction aborted Wednesday after marketers failed to submit relevant trading data, citing confusion over the Capital Markets Authority (CMA) statement issued on Monday.
Marketers did not feel that the guidelines are adequate and have written to the CMA seeking clarification before they resume trading at the Nairobi Coffee Exchange (NCE).
Marketers argue that they do not know whether they would participate at the auction as marketing agencies or brokers, of which they do not have licence for both roles given that the ones that have been in use ceased to exist on July 1 when the new set of CMA regulations were to take effect.
“There is confusion and that is why the auction did not take place this week as the marketers do not know whether they should participate at the auction as brokers or marketing agencies,” said NCE chief executive Daniel Mbithi.
The CMA said it is working with all stakeholders in the sector to resolve the issue and have trading resume at the auction.
“We are working with the stakeholders to ensure the auction resumes soonest possible,” said Wilson Yanga, an officer in charge of licensing at the CMA.
The CMA had on Monday extended the old coffee regulations that legally ceased to exist at the end of June, giving more time to stakeholders to comply with the new CMA Act that was to be effected last week.
The Capital Markets (Coffee Exchange) Regulations, 2020, which were to be effected on July 1, gives the CMA the mandate to license Coffee Exchange and brokers.
The CMA Act establishes brokers, who are an equivalent of the marketing agencies under the previous regulations created by Agriculture and Food Authority.
The auction process begins 12 days before the actual date of trading where marketers are required to submit data on the available lots for sale, grade and other information, which will guide buyers on the coffee that they will buy.
“The exercise cannot take place if this information is not there, which is key in guiding the trading activity at the auction,” Mr Mbithi said.
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