The Capital Markets Authority has approved Kirinyaga Slopes Coffee Brokerage Company Limited as the 14th licensed coffee broker in Kenya, it announced on Wednesday.
The new brokerage company was formed through efforts by the Kirinyaga County Cooperative Union, which represents over 50,000 farmers across 14 cooperative societies in the region. The union promoted establishing Kirinyaga Slopes to support smallholder farmers with better market access and prices.
The licensing aligns with the CMA’s ongoing plans to reform and regulate the coffee market under the Capital Markets (Coffee Exchange) Regulations. CEO Wyckliffe Shamiah emphasized the importance of maintaining momentum on the reform agenda.
“The momentum of the reform agenda needs to be sustained to ensure full implementation of the Capital Markets (Coffee Exchange) Regulations. This is expected to ensure the marketing and trading mechanism at the Nairobi Coffee Exchange promotes fair trade, is transparent and enhances price discovery, ultimately benefitting the coffee farmers,” Shamiah said.
Kenya’s specialty Arabica coffee beans have a coveted status in global markets, prized by roasters and retailers for their bright acidity and complex flavors. But farmers have long complained of exploitative practices by middlemen that siphon off profits.
October prices for Kenya’s AA coffee beans ranged from USD 4.10 to USD 8.60 per kilogram. International price fluctuations directly impact local prices at the NCE, demonstrating Kenya’s outsized influence in global coffee supply chains.
Kirinyaga Slopes joins leading brokers like Dormans Coffee, Africa Coffee Network and Jumbo Agrovet in the licensed brokerage space. Industry experts predict the new entrant will stimulate competitiveness, innovation and value addition services to benefit both farmers and end consumers.
More licensed brokers can improve market access and prices for farmers through enhanced competition. The CMA’s emphasis on transparency, traceability and fair trading seeks to ensure farmers receive their fair share of retail profits.
With demand for premium coffee surging worldwide, Kirinyaga Slopes’ entry comes at an opportune time for Kenya to cement its reputation as an upscale coffee origin. The reforms are seen as progress toward a more prosperous future for the country’s smallholder farmers and entire coffee industry.
