Coffee auction to resume on August 15, says NCE official

Murang’a

Friday, August 4, 2023

KNA by Bernard Munyao

Following millers and marketers’ agreement to adhere to new regulations governing the coffee sector, coffee auction is now expected to resume on August 15.

Nairobi Coffee Exchange (NCE) Chief Executive Officer Ms. Risper Ndung’u has confirmed the auction would resume after all players in the coffee value chain agreed to stick to their respective roles.

Ndung’u who spoke when she met farmers and officials of various coffee societies from Murang’a on Thursday said the resumption of the auction would allow milers and marketers to sell the coffee they have been withholding in their warehouses thus giving farmers hopes to receive their earnings.

The CEO stressed that as the coffee auction opens, all players should abide by the regulations outlined in the Coffee Regulations 2019 pertaining to the roles of milling and marketing that had caused heated controversies.

The official stressed 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 part. Let millers mill the coffee as marketers embark in auctioning of the cash crop,” said Ndung’u.

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

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

“Auction is slated to resume and marketers should not shy away from the regulations as they are meant to streamline the sector and ensure farmers get maximum returns from their deliveries,” she added.

The CEO explained that in the new regulations, the marketers would be remitting proceeds after sale of coffee within 24 hours in the societies’ accounts for onward disbursement to the farmers.

“The new regulations will see the end of delay in disbursement of farmers’ proceeds as has been the norm in the past years. This will ensure there is transparency and farmers get their returns promptly,” remarked Ndung’u.

During the meeting held in Murang’a town, a section of the cooperative societies raised complaints claiming they were being pushed to deliver their coffee to certain millers and marketers.

The officials of the societies were informed that the millers and marketers they were directed to deliver their coffee to were the ones licensed by Capital Markets Authority (CMA).

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

Some coffee farmers led by Evan Mucheke and Irungu Chege of Ngutu and Gatagua coffee factories respectively said the cooperatives societies should be allowed to scout for millers and the marketers.

“The directive on pushing farmers towards specific millers and marketers will disadvantage some players in the value chain,” said Chege.

County government officials who attended the forum led by Trade and Cooperative CEC Mr. Kimani Mugo and his counterpart Prof Kamau Kirangai (Agriculture and Livestock) emphasized that players who would go against the regulations would face the law.

Mugo said his department would be conducting impromptu inspections in the coffee societies to ensure they adhere to the new regulations.

“In past few months, we have held consultations with management of the coffee cooperative societies as the county government is geared towards streamlining the sector,” said Mugo.

Kiriangai on his part said the county government has issued a milling license to Thika Coffee Mills Company based in Gatanga Sub County.

“The firm is expected to only stick to milling coffee delivered by various local cooperatives and not marketing as the regulations stipulate,” said Kiringai.

Courtesy ; K. N. A