Coffee and tea ripe for entry to commodity market
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.
NDIRANGU NGUNJIRI Nairobi