ECX-UNDP KNOWLEDGE FORUM PROGRESS REPORT ON ESTABLISHMENT OF THE COMMODITY EXCHANGE IN KENYA 24 February, 2010

WHAT MODEL IS KENYA SETTING UP System with in-built integrity, Instant access for Sellers and buyers to the regional and later a global market, Efficient shared technology infrastructure so as to substantially reduce transaction costs for market participants and increase the operational / technical efficiency of the exchange, The best expertise in all relevant dimensions, Strategic/Commercial partnerships with leading players like farmers (producers) , grain dealers, banks, collateral managers, connectivity partners, A Warehouse Receipt Depository System, Market Surveillance and Information System, Capacity-Building for all players, and Specialized Support from partners (e.g. grassroots market linkages).

PARTNERSHIPS Supporting Partners Government EAGC/USAID/COMPETE Strategic/Commercial Partners Well Capitalized Bank(s) Grain Dealers Technology/Service Providers in related business Private sector Public Sector

ORGANIZATION SET UP Advisory Board Interim Board Management

ROLE OF PARTNER ORGANIZATIONS Representation on the Advisory Board Representation on the Board of Directors Active participation in product, governance and other committees of the exchange Boost confidence through injection of resources such as finance and technology solutions Support capacity-building and market linkage capabilities: farmers, traders, brokers, banks

ROLE OF NCPB Coordinate relevant approvals, licenses and forms of collaboration with government Developing the framework for consultation with stakeholders Coordinate articulation of stakeholder requirements Provide warehousing network

CHALLENGES Building Confidence Setting up Warehouses Legal Framework Insurance Covers on the commodities State of some facilities Legal Framework Mobilizing the players

THANK YOU