Kenya’s thriving coffee sector under threat as brokers seek to stop Nairobi Coffee Exchange operations.
Angry coffee farmers are planning to demonstrate to State House, Nairobi to force the government to resolve the legal issues facing the Nairobi Coffee Exchange (NCE).
Farmers are warning that despite repeated pleas the main coffee sales outlet that has served them well over the years is now under threat after brokers went to court seeking its operations to be stopped.
They are afraid that unless the legality of the NCE is urgently resolved they will suffer loses including theft of coffee despite the bumper harvest the last season.
The farmers want President Ruto to step in and resolve the matter saying all the gains made by the coffee reforms in the last three years of his presidency will be lost if NCE collapses.
A farmer from Kiambu said they are ready to lead the demonstration to State House to seek audience with the President because they have not been listened to by any other office.
Panic hit the coffee sector after coffee brokers went to court last month over alleged regulatory failures and opaque operations at the NCE accusing the government of allowing unlawful practices in the country’s coffee trading system.
Through the Coffee Brokerage Association of Kenya (CBAK), they claim that NCE is operating without lawful lincensing, transparent governance or valid statutory framework.
The brokers allege that the Capital Market Authority (CMA), which is listed as an interested party in the suit, has failed to enforce compliance and regulate the NCE’s activities.
They want the court to declare NCE’s operations unconstitutional and illegal, compel the CMA to enforce the law and stop the exchange from operating until it complies with statutory requirements.
It is this prayer by the brokers that has alarmed the farmers pointing at the possible disruption of the trading system and the entire value chain.
“We are ready to lead demonstrations to State House, Nairobi and seek audience with the President. We have been calling on the government to address the legal issues facing NCE and nothing has been done. Now we are at the mercy of the court,’’ said the farmer from Kiambu.
NCE is the main trading floor of Kenya’s coffee and over the years, it has helped farmers discover the best prices for their produce. The prices have seen a remarkable increase in the last few years making NCE gain trust especially from farmers and cooperative societies.
