By Morris Githenya
Capital Market Authority (CMA) has directed all the players in the coffee trading value chain to adhere to the laid down regulations and comply with the reforms.
This week the leadership at CMA ordered all the coffee mills to digitalise weighing and information systems to conform with strategies designed to streamline the millers with the operationalisation of the Direct Settlement System (DSS) in line with the regulations.
CMA Chief Executive Officer Mr Wyckliffe Shamiah addressing the millers said the digitization and automation of information processes will improve the coffee trading practices at Nairobi Coffee Exchange (NCE).
The automation, he added, will provide timely information to the Direct Sale Settlement (DSS) provider to settle the payments promptly. The forum between the CMA and millers follows a directive to all players in the coffee market on compliance with the Capital Markets (Coffee exchange) Regulations, 2020 on settlement timelines.
They were further directed to allocate out-turn numbers for every coffee delivered and received for purposes of traceability.
Shamiah explained that President William Ruto and his Deputy Rigathi Gachagua are keen on full implementation of the agricultural sector reforms especially in coffee, tea and dairy to the ultimate beneficiary of the grower and other people along the value chain.
Shamiah disclosed that NCE has until December 31, to meet the set requirements of the self-regulatory organization. “Nairobi Coffee Exchange should formalize the constitution of the governance structure under the provision of the Capital Markets (Corporate Governance) Regulations, 2011,” said the CEO.
Millers were urged to develop stronger associations for self-regulatory compliance. There has been an outcry from the Kenya Coffee Producers Association on the delayed payment to the farmers after their produce is sold through the Nairobi Coffee Exchange (NCE).
Miller managers who attended the meeting were from Kirinyaga Union, Sasini, Bungoma Union, Othaya Mills, Umoja Mills, CMS Mills, Kipkelion Union Mills, Meru Union Mill.