Nairobi — Coffee miller NKG Coffee Mills Limited is shutting down its milling business in Kenya after failing to secure a government license.

The closure follows the implementation of the Coffee Regulations 2019 and the Capital Markets (Coffee Exchange) Regulations 2020.

Gazetted in 2019, the Capital Markets (Coffee Exchange) Regulations 2020 gave the Capital Markets Authority (CMA) the power to license the coffee exchange and brokers.

Also, it introduced the Direct Settlement System (DSS) to facilitate payment between coffee brokers and farmers after the expiration of the old regulation.

Already, the miller has sent redundant letters to some of the employees whose posts will no longer be required.

"In this ongoing changes, there is a potential/possibility of certain posts within the company's staff establishment becoming redundant," the firm's Regional Head of HR, Hellen Akumu, said in a letter seen by Capital Business.

"Your position will be affected by these changes and this letter serves as official notice of intended redundancy in accordance with Section 40 of the Employment Act 2007, Laws of Keren."

However, the miller said that it will conduct consultative meetings within the months of January and February this year before making final plans, including redudancies.

"Whilst exploring alternative avenues during consultations, we wish to notify you the intended redundancy, if no alternative is found and the redundancy confirmed, as per existing laws, will be effective from 29th February 2024, (if confirmed)," it added.