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State Department for Trade

Ministry of Investments, Trade and Industry

 

 

 

SUBSCRIPTION TO THE EQUITY SHAREHOLDING OF KOMEX

PHASE II – CALL FOR EXPRESSION OF INTEREST (INVESTORS’ SELECTION) – REOI No. KOMEX/001/2023-24

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.

KOMEX has an authorized share capital of KES Two (2) billion with a minimum subscription of 50,000 shares at KES. 100 per share reserve price.  The proceeds of capitalization will be used for developing the commodities exchange technology & infrastructure; institutional supporting assets; investment in settlement guarantee fund; corporate & operational purposes; strategic investments; trade & investment financing; other expenditures, and contingencies.  Strategic & anchor investors will play a significant role in the success of the Exchange, hence, KOMEX targets to have a diverse private sector-led shareholding structure with co-investment from government and private investors viz., farmers, Farm Cooperatives, Individual Investors, Institutional Investors, Financial Institutions and Foreign investors.  KOMEX will ensure a balance between National and international shareholders, in its investor selection, to incorporate varied expertise, linkages & capacities in ownership & Board composition, and commodities value chain actors. 

Applicants can access the EOI Submission Form & Investor Selection Criteria on www.komex.co.ke/shareholding and should indicate the number of shares proposed for subscription, and a non-binding offer price in KES. per share, and attach relevant supporting documents in the application. 

Prospective investors are invited to submit sealed EOIs referencing REOI No. KOMEX/001/2023-24 (KOMEX Equity Subscription) in plain sealed envelopes (1 original + 2 copies) at the Tender Box situated on the 2nd Floor, KIBT Plaza, Ojijo Road, Parklands, Nairobi – KENYA and to send an electronic copy of the submission via email to board@komex.go.ke both to be received at KOMEX not later than 11:00 hrs EAT (Nairobi), Thursday 27th June 2024.

EOIs will be opened immediately thereafter at the 4th Floor Boardroom, KIBT Building, Parklands, Ojijo Road, Nairobi – KENYA, in the presence of applicants or their representatives who choose to attend.  All EOI documents shall be in English and late EOIs shall be rejected.  Successful applicants will access the Information Memorandum, followed by due diligence, negotiations, confirmatory letters, and formal subscription.

Download Links:

>> KOMEX EOI Submission Form

>> KOMEX Investor Selection Criteria

>> KOMEX Capitalization Teaser – May 2024

KOMEX Addendum Notice No. 1 (20/06/2024): Extension of Submission Deadline

Prospective applicants for REOI No. KOMEX/001/2023-24 advertised on Page 18 of MyGov Publication dated 21st May 2024 are hereby notified that:

  1. The deadline for submission of Expressions of Interest is hereby extended from the previously specified 11:00 a.m. (EAT), Thursday 27th June 2024 and shall now close at 11:00 a.m. (EAT), Wednesday 10th July 2024; and
  2. All other details and instructions concerning the Investor Selection Criteria and submission requirements remain as previously communicated in the referred KOMEX advertisement.

Download Links:

>> KOMEX REOI Addendum Notice No. 1 (20/06/2024)

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.