By Henry Kinyua
The implementation of the Capital Markets Authority (CMA) Coffee Exchange (Fees) Regulations, 2024, was suspended for six months following a ruling by the Kerugoya High Court on November 17th 2025.
The regulations sought to revise the fee structure for coffee brokerage services by reducing brokerage fees from 2 per cent to 1 per cent, while introducing additional charges of 0.2 per cent for the CMA, 0.3 per cent for the Direct Settlement System (DSS) provider and 0.3 per cent for the Nairobi Coffee Exchange (NCE).
Overall, the proposed changes would have reduced the total cost to farmers from 2 per cent to 1.8 per cent, translating into potential savings of 0.2 per cent.
However, coffee brokers challenged the regulations, arguing that a 1 per cent brokerage fee would not be financially sustainable. They further noted that many brokerage firms are owned by farmers, meaning any financial strain on brokers would ultimately be borne by the farmers themselves.
In its ruling, the court agreed that broader public participation and enhanced stakeholder engagement were required before the regulations could be implemented. It consequently granted a six-month consultation period during which the proposed fees will not be enforced.
Role of coffee brokers
According to the Capital Markets (Coffee Exchange) Regulations, 2020, a broker is defined as:
“A person cleared by the exchange and licensed by the Authority, who may be appointed by a coffee grower or an association of coffee growers in accordance with the Crops (Coffee) (General) Regulations, 2019, to sell their coffee on their behalf through the Exchange.”
In practice, coffee brokers are licensed intermediaries regulated by the CMA who represent farmers at the Nairobi Coffee Exchange. Their responsibilities include preparing, presenting and facilitating the sale of coffee, while ensuring transactions between producers and buyers are conducted efficiently, transparently and fairly.
Of the 16 licensed coffee brokers in Kenya, 11 are owned by farmers, a factor that has amplified concerns that an unsustainable fee structure could undermine the livelihoods of the very farmers the regulations are intended to protect.
