Kenya Liberalizes Agricultural Commodity Market

Kenya launched its Agricultural Commodity Exchange (KACE) heretoday to enhance the liberalization of commodity marketing in thecountry.

Speaking at the launching ceremony held here this evening, DariusMbela, Minister for Agriculture, Livestock Development and Marketingsaid that KACE is a "viable private sector initiative".

Following the launching of KACE and its trading floor, theminister said, "Our farmers are now free to sell their produce tomarkets of their choice."When the government withdrew from participation in commoditymarketing in the process of economic liberalization, farmers havebeen left with no guaranteed markets as before.In view of this situation, Mbela noted that his government iscommitted to the reforms which encourage the private sector to playits proper role not only in production but also in the marketing ofthe commodities.According to the minister, KACE can provide a market for farmersto sell their produce as well as the needed information to guidethemin their plans to produce."The farmer and the consumer can meet and strike out fair dealsbetween them, guided by the true forces of supply and demand on themarket to set the fair prices," he stated.On the same occasion, Adrian Mukhebi, Executive Chairman of KACE,pointed out that the KACE was aimed at providing a market wheresellers and buyers of commodities can meet to trade, and providingcurrent market information to assist the sellers and buyers inmakingmore profitable decisions.Once the Nairobi Trade Floor is fully operational, Mukhebi said,KACE shall establish regional branches in different parts of thecountry, to be connected by a modern communication network.He said that KACE had plans to spread its service to eastern andsouthern African markets once commodity exchanges are alsoestablished there.Agricultural commodities will be traded at the KACE trading floorfor immediate delivery and in forward contract and futures' marketsfor delivery at later dates.The trading days have been set for Tuesdays, Thursdays andSaturdays from 10.00 a.m. to 2.00 p.m.KACE will start a web site home page on the internet which willenable it to have access to information and commodities on worldmarkets and vice versa.