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The government of Kenya is in the process of establishing a
national multiple commodities exchange. This is in line with the Capital
Markets 10-year strategic plan which ranks the local financial market as
sophisticated enough to support a commodities and derivatives market.
The Kenya National Multi Commodities Exchange (KOMEX) will
be a demutualized exchange with a spot market of tangible warehoused goods and
the derivatives segment will be launched at a later date. The exchange will
help traders through; efficient price discovery mechanisms, risk management,
improved local and international trade, and warehouse receipt financing.
The commodities exchange aims to have a diverse shareholding
structure that will include; government, international investors, farmers and
farmers’ cooperatives, individual investors, institutional investors, and
financial institutions such as banks. The commodities exchange hopes to attract
investors with the skills and capacity to drive growth in the institution.
KOMEX seeks to raise KSh2 billion to help in establishing
the exchange, create the necessary infrastructure, fund the Settlement
Guarantee Fund, and finance other expenses that may arise. Investors are expected to plow in a minimum of
KSh5 million to gain ownership in the commodities market. Buyers of the
commodities exchange have until 14th May to submit their Expression
Of Interest at the State Department of Trade Office in Telposta Towers.
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