Goods exchange platform to be up in two years

A government-backed commodities exchange may be put in place over the next two years after the Ministry of Trade kicked off search for a consultant to oversee its establishment yesterday.

In an advertisement in the dailies, the ministry says it wants to hire a private firm for two years to develop a project plan, come up with IT system requirements and prepare a model to fund and run the project.

“The National Commodities Exchange will be an appropriate tool for providing farmers and traders with much-needed credit opportunities, reducing farmer vulnerability by allowing farmers to sell produce at a time prices are attractive,” the ministry said.

The exchange will also reduce post-harvest losses attributed to poor storage practices. The government said it has carried out a feasibility study that has shown Kenya is ready to establish a nationwide commodity market, given existing business environment and stakeholder support.

UK-backed online commodity exchange G-soko targeting grain farmers across East Africa has already been successfully piloted and launched.