Kenya to Launch KOMEX Platform to Boost E-commerce, Digital Trade

KOMEX will link commodity producers and buyers to local as well as import and export markets via an integrated electronic platform for trade in commodities and derivatives backed by the Warehouse Receipt System (WRS).

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ICT and Trade Cabinet Secretaries Eliud Owalo and Moses Kuria

The Connected Kenya Summit 2023 has since been completed, but there are some key highlights that were made at the show, most of which we have covered here.

Present during the conference were a number of government officials, including the CS for Trade Moses Kuria.

According to his presentation, the CS mentioned that digital trade and e-commerce are becoming increasingly important for businesses and countries across the globe as more consumers and businesses go online.

His Ministry (Investment, Trade and Industry) has reportedly made digital trade, e-commerce, and the transition to the fourth industrial transformation a priority in its policies and plans.

Digital trade/e-commerce

Digital trade refers to the sale and purchase of goods and services over the Internet or through other digital channels, while e-commerce involves the buying and selling of goods and services through online platforms or marketplaces.

Of course, these technologies allow businesses to reach customers beyond their physical locations, expand their markets, and reduce the costs of traditional trade.

For countries, digital trade and e-commerce offer significant economic benefits, such as driving economic growth, creating jobs, increasing export revenues, enabling Micro, Small, and Medium Enterprises to participate in the Global value chain, and promoting inclusivity.

Kuria mentioned that Kenya has been making notable strides in digital transformation and has positioned itself as a leader in the adoption of digital technologies in Africa.

To support digital trade, the Ministry has been developing the business and investment climate and has established platforms such as E-Regulations, E-opportunities, and PASHA to facilitate investor support and case management.

What’s more, the government has launched various initiatives aimed at fostering innovation and entrepreneurship in the sector, such as the Kenya National Digital Masterplan and Digital Economy Blueprint, which outline a roadmap for Kenya to become a leading digital economy in Africa by 2032.

It also emerged that Kenya is reviewing its policies and taxation structures to support the entrepreneurship and innovation ecosystem, particularly for startups.

KOMEX

Key projects prioritized by the government include the Kenya National Multi Commodities Exchange (KOMEX), a strategic intervention that will address market inefficiencies and market information asymmetry by facilitating safe, simplified, secure, and structured trade in agricultural and non-agricultural commodities.

“It will leverage technology to improve access to quality commodities, reduction of post-harvest losses, increased producer incomes, youth and women employment, access to accurate market information, fair price discovery and stabilization of commodity markets,” said CS Kuria.

KOMEX will link commodity producers and buyers to local as well as import and export markets via an integrated electronic platform for trade in commodities and derivatives backed by the Warehouse Receipt System (WRS).

The Ministry is alos developing County Aggregation and Industrial Parks equipped with technology to further support digital trade.