The Kenya Agricultural Commodity Exchange (KACE) is a private sector firm established in 1997 in Kenya. It serves primarily as an information service and spot exchange for agricultural commodities, facilitating transactions between buyers and sellers, as well as importers and exporters. Here are some key aspects of KACE and its operations:
Objectives and Functions
- Price Discovery: KACE enhances price discovery by providing transparent and competitive mechanisms for buyers and sellers to determine prices for agricultural commodities.
- Linkage Facilitation: The exchange aims to link farmers, traders, consumers, and other market intermediaries, thereby improving their bargaining power and competitiveness in the marketplace.
- Information Services: KACE offers market information to stakeholders, helping them make informed decisions about trading agricultural commodities.
- Technology Use: It applies information and communication technologies (ICT) to add value in rural areas and empower stakeholders in the agricultural sector.
Interactive Radio Program: Soko Hewani
- Partnership with West FM Radio: KACE has collaborated with West Media Limited, owners of West FM Radio Station in Bungoma Town, Western Province of Kenya.
- Program Name and Meaning: The interactive radio program is named “Soko Hewani,” which translates to “The Supermarket On Air” in Swahili.
- Functionality: During the Soko Hewani program, offers and bids for agricultural commodities are announced on air.
- Audience Participation: Listeners participate by bidding on offers through various channels such as phone calls, SMS, IVR (Interactive Voice Response), or email messages.
- Real-Time Matching: The radio program staff match the offers and bids in real-time during the broadcast.
- Deal Conclusion: Once matched, negotiations and deal conclusions may continue via mobile phone calls, SMS, or reference back to the Market Reference Committee (MRC) that submitted the offer or bid.
Impact and Reach
- Market Access: Soko Hewani enhances market access for agricultural commodities by leveraging radio as a medium to reach a broad audience, including rural communities.
- Transparency and Efficiency: The program contributes to transparent and efficient trading practices, promoting fair dealings in the agricultural sector.
- Community Engagement: By involving listeners actively in the bidding process, Soko Hewani fosters community engagement and participation in agricultural trade.
In summary, KACE plays a pivotal role in Kenya’s agricultural sector by providing essential market infrastructure, facilitating transactions, and promoting transparency through innovative initiatives like the Soko Hewani radio program. This approach not only enhances market efficiency but also empowers stakeholders across the agricultural value chain.
