NAIROBI, Kenya — The Capital Markets Authority has granted two additional coffee broker licences and approved Stanbic Bank Kenya Limited as a Direct Settlement System (DSS) provider for the Nairobi Coffee Exchange.
In a statement issued on Thursday, the regulator said the approvals are part of efforts to improve transparency, efficiency, and price discovery within Kenya’s regulated coffee trading market.
The move also seeks to strengthen settlement systems for coffee proceeds and support the government’s wider reforms aimed at revitalising the coffee sector.
Stanbic Becomes Second DSS Provider
Stanbic Bank becomes the second Direct Settlement System provider after Co-operative Bank of Kenya, which has served as the sole DSS provider since August 2023.
According to the authority, the DSS framework facilitates the clearing and settlement of coffee proceeds at auction, ensuring timely remittance of funds from buyers to service providers and ultimately to farmers.
The regulator said the approval will improve oversight of market players while enhancing transparency and efficiency in coffee transactions.
“The approval enhances effective oversight of players in the regulated coffee trading market, intended to deepen price discovery, transparency, and timely settlement for coffee farmers, cooperative societies, and other industry stakeholders,” the statement said.
Two Firms Receive Coffee Broker Licences
Among the newly licensed firms is Ahadi Coffee Limited, which intends to provide coffee brokerage services to farmers, cooperative societies, and traders operating at the Nairobi Coffee Exchange.
The regulator also granted a coffee broker licence to Cafforra Coffee Company Limited.
According to the statement, the company will market and sell coffee on behalf of farmers and cooperatives in Kisumu County and neighbouring counties, including Uasin Gishu County and Elgeyo-Marakwet County.
The firm is also expected to provide advisory services to farmers and cooperative societies with the aim of improving returns to growers.
Coffee Sector Reforms Gain Momentum
Wyckliffe Shamiah said the new approvals would contribute to a more efficient and well-regulated coffee trading ecosystem.
He noted that the licences align with ongoing government efforts to strengthen the coffee value chain and improve earnings for farmers.
Kenya’s coffee sector remains one of the country’s key agricultural export industries, supporting hundreds of thousands of smallholder farmers and cooperative societies.
Push for Transparency and Better Farmer Returns
The latest reforms form part of broader attempts by regulators and policymakers to modernise coffee trading and improve accountability within the sector.
The Nairobi Coffee Exchange continues to play a central role in Kenya’s coffee trade by facilitating auctions and connecting growers with international buyers.
