AFA directs coffee dealers to obtain movement permit
Business
By
Boniface Gikandi
| Aug 15, 2024
The Agriculture and Food Authority (AFA) has outlined radical measures to streamline the coffee sector to safeguard the interests of the growers.
The authority has directed all coffee dealers to obtain movement permits.
The regulator has said all the buyers and warehousemen must obtain movement permits by September 1, to enable them to make arrangements for quality inspection of clean coffee consignment intended for export.
In a circular dated August 9, AFA Director General Bruno Linyiru said the movement permit will assist in tracing the origin of the coffee as stipulated in Coffee General Regulations 2019.
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Dr Linyiru directed that all the requests for movement permits must be accompanied by warehouse receipts for proof of ownership and traceability.
The buyers shall also remit a sample of 200 grammes of clean coffee representing the export consignment for arbitration should a dispute on quality arise.
"Buyers should book for inspection with the quality assurance section of coffee directorate three weeks lodging for an International Certificate of Origin (ICO) on the Kentrade portal to allow coordination of inspection logistics and preparation of reports," read part of the circular.
The circular has been copied to Capital Markets Authority (CMA), Kenya Revenue Authority, Kenya Coffee Traders Association, Council of Governors, and Nairobi Coffee Exchange (NCE), among others.
Last month, the CMA approved new trading rules 2024 to guide coffee trading at the NCE designed to streamline operations and ensure level playing ground for the licensed players in the value chain.
The rules spell tough penalties for violations and are designed to curb malpractices at the coffee auction, where the users, brokers, and buyers, going astray will have their trading licenses revoked.
NCE Chief Executive Officer Lisper Ndung'u said all the transactions must adhere to the new rules at the coffee auction.