Government to set up national commodity exchange platform

Written By: O'Brien Kimani
191

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The government plans to set up the national commodity exchange platform early next year after years of delays.

The Kenya National Multi Commodities Exchange will be set up through public private partnership and be managed by a commodity exchange board.

Trade Principal Secretary Dr. Chris Kiptoo has said the regulations governing the exchange will be published next month by the National Treasury.

Plans to set up a commodity exchange platform have been on the card for more than five years now, due to financial and regulatory challenges.

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The government hopes the exchange will help address supply chain weaknesses, low pricing of commodities and post-harvest losses.

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So far 21 commodities among them maize, wheat, bananas and sugar have been identified to start trading once the platform is operationalized.

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Kiptoo says, the government is in the process of picking investors who will help in setting up the warehouses for storage of the goods.

Kiptoo says the platform will allow seamless interaction between suppliers, trader and consumer

The Kenya National Multi Commodities Exchange will be managed through a shareholding structure comprising the government, farmers’ co-operative societies, institutional and foreign investors.

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The government has amended the Capital Markets Authority act, giving the authority the mandate to regulate the commodity exchange market.

Last week President Uhuru Kenyatta signed into law the warehouse receipt law that sets in motion the creation of an efficient warehouse receipt system and establishment of an exchange for agricultural commodities.

 

 

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