Coffee auction set to roll back after a month of uncertainty

When former Agriculture CS Mwangi Kiunjuri unveiled a plaque to launch Nairobi Coffee Exchange (NCE) upgraded auction system. [David Njaaga, Standard]

The coffee auction will resume on August 15, ending a month of uncertainty where the millers and marketers withheld the commodity in their warehouses.

In the new dispensation, the players are outlined by Nairobi Coffee Exchange (NCE)  to operate within the legal framework.

NCE Chief Executive Officer Ms Risper Ndung’u called on the players to abide by the regulations outlined in the coffee regulations pertaining to the roles of milling and marketing that had caused heated controversies.

She spoke in a forum convened to introduce Murang’a coffee stakeholders on requirements in the coffee value chain, amid complaints from a section of the cooperative societies movement, that they were being pushed to certain millers and marketers.

The CMA official feared that the law states that each player should carry a specific role as outlined by the regulations.

“The millers should play their role and leave the marketing aspect to those licensed by the regulator to do their scope,” said Ndung’u.

They were also notified on the operations of the Murang’a Coffee Mills and the licensed Murang’a County Coffee Dealers and marketers licensed by the Capital Markets Authority (CMA).

“Only licensed players who will have met the requisite conditions that include taking the coffee samples will be allowed to participate,” said Ndung’u.

In the new arrangement, the marketers will be remitting proceeds after the sale in 24 hours in the society’s accounts for onward disbursement to the farmers.

“The delay that existed for years with the farmers' proceeds has come to an end as the regulator will be keen in ensuring transparency,” said the coffee auction chief.

In the past one month, the coffee auction has remained non-operational, after the marketers kept away from the platform saying the imposed regulations by the government were exploitative in nature.

After the Meru Coffee Conference convened by Deputy President Rigathi Gachagua, the millers and marketers shied away from the market after it enforced the Coffee Regulations, 2019.

The forum was also attended by county government officials led by Trade and Cooperative CEC Mr Kimani Mugo and his counterpart Prof Kamau Kirangai (Agriculture and Livestock) who emphasized that players who will go against the regulations will be arrested and prosecuted.

Mugo said his department will be conducting impromptu inspections in the coffee societies when complaints are raised.

“We have held consultations with the management of the coffee sector as the county government is geared towards streamlining the sector,” said Mugo.

A section of Murang’a coffee farmers led by Evan Mucheke and Irungu Chege of Ngutu and Gatagua coffee factories respectively said the sector should be allowed to scout for millers and marketers.

“The aspect of pushing farmers towards the corner will disadvantage some players in the value chain,” said Chege.

 Kiriangai on his part said he has issued a milling license to Thika Coffee Mills based in Gatanga.

“The operator should only engage in milling of the commodity and not marketing as the regulations stipulate,” said Kiringai.