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State Department for Trade

Ministry of Investments, Trade and Industry

 

 

 

INVITATION TO REGISTER AS A MEMBER OF KOMEX

CALL FOR EXPRESSIONS OF INTEREST (MEMBER REGISTRATION) PHASE I – REOI No. KOMEX/002/2023-24

The Capital Markets 10-year Master Plan, under Pillar Il, observes that Kenya’s financial markets have reached the level of sophistication from which the country can move to the next stage with the introduction of structured commodity markets & derivative markets as key actions.

The Kenya National Multi Commodities Exchange Limited (KOMEX) is a Financial Corporation under the State Department for Trade, Ministry of Investments, Trade and Industry, with The National Treasury and The Nairobi Securities Exchange PLC as founding shareholders.  It was incorporated in 2019 pursuant to a Government of Kenya Cabinet Directive as a Special Purpose Vehicle (SPV) and The National Implementing Agency for establishing a private sector-led National Multi-Commodities Exchange, a demutualized Commodities Exchange with regional and international linkages to operate a spot market segment for over-the-counter (OTC) traded and Exchange traded spot contracts for physical commodities securitized and warehoused at warehouse receipt system (WRS) certified warehouses as well as derivatives market segment. The KOMEX Digital Marketplace facilitates efficient price discovery, market access, financial intermediation on trade & investments, and risk management.

Driving Commodities Trade as a membership-based, Self-Regulatory Organization (SRO), under the Capital Markets Act Cap 485A of 2019, KOMEX promotes, facilitates, and enables structured trading of quality agricultural and non-agricultural commodities standardised and securitised under the Warehouse Receipt System (WRS).  The Capital Markets Authority (CMA) has granted regulatory approval for the Trading Rules of The Exchange (KOMEX Rulebook 2023) and KOMEX has developed an integrated trading platform, Market Information System, and payment settlement system, linked to the WRS Central Registry for buying and selling of raw and processed commodities, provision of market information, and fair market price discovery, all enabled by an eco-system of sector regulators, market participants, warehouse operators, financial institutions, trade support service providers, and development partners.

Seize The Opportunity to join KOMEX by registering as a member of the Exchange.  Individuals and organizations interested in joining KOMEX are invited to complete and submit an online electronic Application Form on the KOMEX Registration Page at www.komex.co.ke/registration or by downloading and completing the form, attaching and submitting it via email to membership@komex.go.ke with the subject reference REOI No. KOMEX/002/2023-24 (KOMEX Membership)

Application and registration of KOMEX members is a continuous process, and applications will be processed on a first-come, first-served basis.

Registration Process: Applicants will receive acknowledgments by email from membership@komex.go.ke and shall be assigned dedicated KOMEX Membership Officers to advise and guide on the fee structure, benefits, obligations, and completion of membership registration, training, and onboarding process.

Download Links:

>> KOMEX Membership Application Form

>> KOMEX Membership Prospectus – May 2024

Introduction

Agriculture and related activities are the main source of income and 60 percent of employment for over 80 percent of Kenyans. The sector accounts for more than half of the country’s gross domestic product (GDP). The Government of Kenya (GoK) depends for about 45% of its revenue from this sector. Agriculture also makes up more than 50% of the country’s export earnings. Accordingly, the GoK has placed a great deal of importance and due attention to the development of agriculture in Kenya.

To address the growth and development challenges of the sector, the GoK has expressed a strong policy commitment to supporting the establishment of a public-private sector-led National Commodities Exchange (“the Exchange”). The Exchange will materially impact on the livelihoods of millions of Kenya’s smallholder producers and other actors, in both agricultural and non-agricultural commodity value chains, and the agricultural development led industrialization.

A transparent and efficient marketing system for key commodities in the country helped by the Exchange will have significant economic impact not only in terms of improving the export competitiveness of Kenyan commodities but also in stimulating domestic value addition and processing and other post-harvest activities. A marketing system that enables all actors to participate in a “level playing field” will further enable Kenya to achieve its goals of financial inclusion and support to less advantaged actors in the economy, particularly small-scale farmers and traders, largely operating in the informal economy.

A vibrant Exchange, powered by appropriate information and communications technology (ICT), will also strengthen the vision to place Kenya as an African, and potentially global, powerhouse in ICT. The Exchange shall be regulated by the Capital Markets Authority. A further ambition would be to ensure that a commodity exchange, while initially and primarily serving the needs of the Kenyan economy, evolves to potentially become a regional and continent-wide hub for the structured trading of commodities. The establishment of the Exchange in Kenya should finally be a private sector-led undertaking, with the concrete support and enabling environment provided by the public sector in various ways, such as policy and regulatory support, legal framework, and other measures.

The State Department of Trade, to lead the project for establishment of the Commodity Exchange in Kenya, has hired the Consultants to implement the framework of commodity exchange. A Task Force comprising representatives of relevant line ministries has been set up. It is thus envisaged that the Consultants will work on implementation of the Commodity Exchange in regular close interaction with the Taskforce.

Kenya Vision 2030is the country’s new development blueprint. It aims to transform Kenya into a new industrializing, “middle-income country providing a high quality life to all its citizens by the year 2030”. The adoption of the Vision by Kenya comes after the successful implementation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS) which has seen the country’s economy back to rapid growth since 2002, when GDP grew from a low of 0.6% and rising gradually to 6.1% in 2006. The Vision 2030 is based on three “pillars”: the economic, the social and the political.