This archive report was first published on 16 July 2019.
On July 16, 2019, the Kenyan government announced plans to establish a national commodity exchange platform, a move aimed at addressing supply chain weaknesses and low pricing of commodities.
The Kenya National Multi Commodities Exchange will be set up through a public-private partnership and managed by a commodity exchange board.
According to Trade Principal Secretary Dr. Chris Kiptoo, the regulations governing the exchange will be published next month by the National Treasury.
The government hopes the exchange will help reduce post-harvest losses and improve the pricing of commodities.
So far, 21 commodities, including maize, wheat, bananas, and sugar, have been identified for trading on the platform once it is operationalized.
The government is currently in the process of selecting investors to help set up warehouses for the storage of goods.
The Kenya National Multi Commodities Exchange will be managed through a shareholding structure comprising the government, farmers' co-operative societies, institutional, and foreign investors.
Additionally, the government has amended the Capital Markets Authority Act, giving the authority the mandate to regulate the commodity exchange market.
President Uhuru Kenyatta signed into law the Warehouse Receipt Law last week, which sets in motion the creation of an efficient warehouse receipt system and the establishment of an exchange for agricultural commodities.
