| What is KACE? |
| | The Kenya Agricultural Commodity Exchange Limited (KACE) is a private sector firm launched in Kenya in 1997 to facilitate competitive and efficient trade in agricultural commodities, provide reliable and timely marketing information and intelligence, provide a transparent and competitive market price discovery mechanism and harness and apply information and communication technologies (ICTs) for facilitating trade and information access and use, initially in Kenya but to scale out to the East African Community subsequently. KACE is a limited liability company with a Board of Directors which manages its operations in accordance with its established Rules and Regulations.
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| What prompted the establishment of KACE? |
| | Two developments prompted the establishment of KACE in 1997. The first is the liberalisation of agricultural marketing by the Government of Kenya, which provided increased opportunities for profitable private sector participation in agricultural production and marketing. The second is the establishment and promotion of the East African Community among the member states of Kenya, Uganda and Tanzania, which provided increased opportunities for cross-boarder trade in an enlarged market. |
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| Who are the Stakeholders of KACE? |
| | KACE stakeholders consist of all actors in agricultural commodity value chains. These include any farmer, producer or consumer, seller or buyer, exporter or importer of agricultural commodities (crop as well as livestock, inputs as well as products) who is keen on exploiting the opportunities created by market liberalisation and regional integration. More specifically, stakeholders of KACE include:
a) The Farmer
KACE provides any farmer, small or large, with alternative markets for selling his produce, or buying his/her inputs. KACE is aware that the bulk of our farmers are small-scale. However, there exists the potential for them to organise themselves into marketing groups or co-operatives. They can then aggregate their small individual quantities into sizeable volumes, and offer these on the Exchange, or bid as a group for the purchase of inputs at more favourable discount prices. In this respect, KACE has held seminars all over the country and sensitized farmers on the importance and advantages of group or collective marketing. As a result several farmers’ marketing groups have been formed in several parts of the country for purposes of accessing input and output markets and marketing information through KACE.
b) The processor
The processor such as a miller or manufacturer can use KACE to source for his/her raw material supplies and market his/her finished products at minimal marketing costs. Through forward contracting or future’s options to be developed, the processor would ensure him/her-self regular supplies of raw materials at guaranteed prices.
c) The Commodity Dealer/Broker
The commodity dealer can use KACE as a One-Stop shop for sourcing purchases or sales, imports or exports for his clients. He/she, as a Member of KACE, has a business opportunity to represent clients who are not able to trade on the Trading Floor in person on commission.
d) The Parastatal
A marketing parastatal has an opportunity to use KACE services to stabilise both commodity supplies and prices. It can do this by offering commodity supplies or sourcing imports through KACE Floors in times of domestic shortages or deficits, or sourcing purchases or exporting reserve stocks in times of surpluses. The exchange offers more transparent and competitive way of sourcing for imports in times of national deficits, or exporting surpluses in times of excess supplies.
e) The Banker
The banker has a business opportunity to lend money to or finance buyers or sellers, and therefore facilitate and promote agricultural trade.
f) The Transporter
The transporter has a business opportunity to transport commodities from sellers to buyers. KACE offers the opportunity to know who needs transport.
g) The Insurance dealer
The insurance dealer has a business opportunity to insure commodities during transportation between the seller and the buyer.
h) The Market Analyst
The professional market analyst has a business opportunity to provide consultancy services in market and price analysis and forecasting to sellers, buyers, dealers and brokers.
I) The Relief Agency
International Famine Relief agencies such as WFP, CRS, RED CROSS, etc. and the Government could source supplies more competitively and cheaply through the services of the exchange.
J) The Government
The private sector conducts its business within the framework of government policies. For the sector to participate most effectively and with confidence in the economy it requires clear, consistent and predictable polices from the government. KACE could serve as a partner to the Ministry of Agriculture in improving access by farmers to better markets and marketing information, and in providing marketing information and intelligence that can assist in planning and policy formulation. |
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| How can one sell or buy through KACE? |
| | One cans sell or buy commodities or services through KACE by using any of KACE’s physical or virtual trading floors explained above. The physical trading floors are the trading boards available at KACE’s market resource centers, and the virtual trading floors are the radio, phone and internet based platforms that KACE has developed. KACE charges a placement fee for placing an offer or bid through any of the trading floors, and a negotiable commission on successful transactions brokered through KACE.. |
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| What advantages can one get by buying and selling through KACE? |
| | | There are many advantages you can get by buying or selling commodities or services through the KACE’s Trading Floors. These include: | |
- You have access to wider markets: domestic, regional and international.
- You enjoy competitive prices from many alternative buyers or sellers.
- You have access to marketing information and intelligence to assist you to make the most profitable decisions when buying inputs or selling products.
- You will be able to hedge against market risks of supply, demand and price fluctuation through forward and futures contracting when these services become available.
- You can avoid the risk of not getting paid when you have delivered a commodity, or not getting the commodity delivered when and in the quality you have paid for it.
- You have access to arbitration in case of dispute with the other party.
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| What is Soko Hewani |
| | Soko Hewani, The Supermarket On Air, is an innovative Radio Programme developed by the Kenya Agricultural Commodity Exchange Limited (KACE) and accessed through the KACE Market Call Centre (MCC) to help clients to sell or buy or lease or rent agricultural and any other commodities, properties and services efficiently and profitably. |
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| What does Soko Hewani involve? |
| | Soko Hewani involves using a radio programme to match offers to sell or lease, or bids to buy or rent agricultural and any other commodities, properties and services compiled by the KACE MCC. The MCC is a centralized office at the KACE Headquarters located at the Brick Court building, Upper Second Floor, Mpaka Road, Westlands, Nairobi, used for receiving and transmitting information on offers and bids for the commodities, properties and services. The MCC is equipped with the state of the art information and communication technology (ICT) equipment and software that allow Agents to receive and process a large number calls and amount of data. The MCC is accessed by calling the phone number 0900881900 on 24/7, day or night or holiday.
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| What commodities or services can be bought or sold through Soko Hewani? |
| | Any agricultural or other commodity, property or service can be sold or leased, bought or rented through Soko Hewani and the MCC. Target agricultural commodities include maize, rice, wheat, millet, sorghum, beans, tomatoes, cabbages, onions, carrots, fruits, potatoes, bananas, cattle, sheep, goats, camels, chicken, turkeys, eggs, milk, fish, honey, seeds and fertilizers. Target properties include houses, vehicles and land. Target services include processing, packaging, transport for commodities, storage / warehousing, grading, quality testing and finance.
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| Who are the target clientele? |
| | The target clientele are sellers and buyers of agricultural and other commodities, properties and services, such as farmers, agricultural commodity traders, brokers, processors, wholesalers, retailers, consumers and seed and fertilizer suppliers. These may be individuals or institutions. |
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| How does Soko Hewani work? |
| | Before Soko Hewani goes on air:- A client calls KACE MCC on 0900 881900 to place an offer to sell or lease, or bid to buy or rent, any agricultural or other commodity, property or service. Any mobile phone can be used to call.
- A KACE staff Agent at the KACE Market Call Centre answers the client phone call.
- The KACE Agent records the offer or bid information.
- The data is transferred into the Soko Hewani Database, and remains valid for a maximum period of 14 days.
- A client can call the MCC on 0900 881900 to get information on the offers or bids available in the database.
- Calls to 0900881900 can be made any time 24/7, day or night, week day or weekend, working day or holiday.
- A client can also access the data through the KACE website www.kacekenya.co.ke.
- The data is also available through franchised KACE Market Resource Centres countrywide.
- In the near future, clients will also be able to access the data through mobile phone SMS.
During Soko Hewani Programme:Due to limited broadcast time, KACE selects a limited number of offers and bids from the MCC database for broadcasting on S oko Hewani through partner radio stations such as the Kenya Broadcasting Corporation. The selected offers and bids are verified before they are broadcasted. |
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| What happens after the Soko Hewani broadcast? |
| | At the end of the Soko Hewani broadcast, listeners are advised to continue calling the KACE MCC on 0900 881900 any time 24/7, day or night, week day or weekend, working day or holiday, to place offers or bids or seek more information on the offers or bids. After office hours calls are automatically recorded for processing on the subsequent working day. Clients can also access the information on offers and bids on a 24/7 through the KACE website www.kacekenya.co.ke, and in the near future, through mobile phone SMS. |
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| How long and how frequently is the Soko Hewani broadcast? |
| | A fifteen-minutes once a week programme is broadcasted initially on the KBC radio. Depending upon demand, the frequency and length of the programme will be modified.
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| What other information is provided to Soko Hewani listeners? |
| | KACE also informs listeners about its fee-based back-end clearing-house services that facilitate the trading activities, such as quality testing/control, packaging, warehousing / storage, transportation, financing and insurance, offered by the KACE Headquarters and KACE franchised MRCs. |
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| How much does it cost to use Soko Hewani? |
| | A client pays a fixed rate of (currently) Ksh 100 per call (no time limit) to the KACE MCC on 0900 881900 number. Accessing offers and bids through the KACE website www.kacekenya.co.ke is by payment of membership subscription available at the website. This cost to the client is the advertisement, search or placement fee, for a market, to sell, buy, lease or rent a commodity, property or service. A small negotiable commission is charged for the back-end clearing services requested from KACE.
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| What benefits do You get by using Soko Hewani? |
| | - You are likely to get a better price for the commodity, property or service that you sell or buy.
- You save on your costs of having to look for a market yourself, such as transport, meals, hotel, and time.
- You avoid being exploited by middlemen.
- You reach markets that are far away from you.
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| What is KACE’s disclaimer? |
| | Commodity offers and bids are received from sources believed to be reliable, and KACE does not guarantee their accuracy or completeness, and KACE does not accept any responsibility for any damage or loss incurred as a result of using the information or services it provides.
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