The Nairobi Coffee Exchange (NCE) in Kenya is undergoing reforms to enhance farmer incomes and transparency in coffee trading. The controversy over authority between the Coffee Directorate and the Capital Markets Authority (CMA) regarding NCE's operations is being resolved. As part of Kenya's coffee reform agenda, the NCE will transition to a new entity called The Coffee Exchange, aiming for fair and transparent trading to benefit coffee farmers.
The 2016 review of the Capital Markets Act grants the CMA the mandate to regulate spot commodity markets, including coffee. A task force, appointed by the Cabinet Secretary, will oversee the 12-month transition period, and once completed, the CMA will become the regulatory authority for The Coffee Exchange. The CMA's commitment to coffee sub-sector reforms is evident in licensing coffee brokers, like Kirinyaga Slopes Coffee Brokerage Company Limited in 2023, to strengthen the industry. The Capital Markets Authority, established in 1989, plays a crucial role in regulating and developing orderly, fair, and efficient capital markets in Kenya to promote market integrity and investor confidence.
