Monday, May 27, 2024
Home > Business & Finance > Kenya to launch an e-commerce platform to link traders, buyers

Kenya to launch an e-commerce platform to link traders, buyers

The country is set to launch an e-commerce platform that will see traders and farmers sell their goods and farm produce on a digital platform under the Kenya National Multi Commodities Exchange (KOMEX).

Principal Secretary in the Ministry of Trade Alfred K’Ombundo said that the platform would link commodity producers and buyers through an integrated electronic platform where they can trade in commodities and derivatives backed by the Warehouse Receipt System (WRS).

Speaking on Monday when he closed a one-week trading rules validation workshop for stakeholders drawn from the ministries of Trade, Information, communications and The Digital Economy and Cooperatives at a Nanyuki hotel, the PS noted that a multi-commodity exchange was an important part of modernizing the country’s agricultural production systems.

“Currently, we are losing 30 to 40 per cent of our products in the agriculture sector due to post-harvest losses, and in the production space, we are still losing quite a lot. This multi-commodity exchange creates a platform whereby we are incentivizing farmers and local producers to be part of a system where the buying process can happen in a very determinant way,” K’Ombundo said.

He added that the workshop came up with a trading rule book that will guide on how trade will be regulated on the e-platform, who can trade on it, as well as modalities for the insurance of goods being traded.

The Trade PS also noted that the KOMEX platform would come in handy in eliminating brokers and cartels in the coffee sector by linking farmers’ cooperatives directly with local and international buyers.

“Under KOMEX, coffee farmers will have a choice in determining who they can trade their produce with,” he added.

Nairobi Securities Exchange Chief Executive Officer Geoffrey Odundo said the platform would assure traders of fair market trading in terms of monitoring and surveillance.

“We are looking forward to having a very highly efficient trading mechanism that guarantees fair and better pricing and information asymmetry that will enable every Kenyan to enjoy a very high level of price discovery,” Odundo said.

The President’s Economic Advisor on Trade, Robert Muriithi, noted that the KOMEX platform would be a key avenue for the government to implement its promises as outlined in the Kenya Kwanza manifesto.

By Martin Munyi

Leave a Reply