Cof­fee and tea ripe for en­try to com­mod­ity mar­ket

The Star (Kenya) - - News Business -

Kenya’s fi­nan­cial mar­kets have reached so­phis­ti­cated lev­els from which it can move to the next stage with the in­tro­duc­tion of de­riv­a­tive mar­kets — both fi­nan­cial and com­mod­ity. Kenya can de­velop ac­tive agri­cul­tural and min­eral prod­ucts but first we need to im­prove the spot mar­kets for agri­cul­tural prod­ucts, which will im­prove prices for farm­ers and im­prove food se­cu­rity. This will help pota­toes farmer in Molo sell his or her pro­duce at a bet­ter price. It will also help to pre­dict the sell­ing price dur­ing plant­ing. The Nairobi Cof­fee Ex­change and Mom­basa Tea Auc­tion are ripe for the com­mod­ity mar­ket. The de­riv­a­tives will help eco­nomic agents im­prove their mar­ket and credit risk man­age­ment. They also foster fi­nan­cial in­no­va­tion and mar­ket de­vel­op­ment, thus in­creas­ing mar­ket re­silience to shocks . But we need new rules to mit­i­gate risks.


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