Kenyan farmers will soon have their own market where they sell produce directly to consumers, cutting off the traditional value chain that is replete with middlemen.
The Nairobi Farmers Market, which is under construction in the upmarket Runda Estate, off Kiambu Road, will contain 45 stalls that are exclusively operated by farmers.
This borrows from international practice where most cities have farmers markets that supply produce direct from the farms to the consumers. While some provide temporary selling space for different farmers on a day-to-day basis, others lease out permanent shops that are operated by individual farmers who take the space on a long-term basis.
“We are essentially addressing the contradiction where farm-gate prices for cabbages, for example, are less than Sh10 a piece but the consumer pays Sh60. In-between numerous traders, brokers and county levy collectors eat the sweat from the farmer and the savings from the consumer. We are creating a facility that will be a big help for both the farmer and the consumer,” says Mr Mashine Munene, the Project Manager.
He says the other concern the market will address will be traceability of produce and guarantee of good agricultural practices. All the farmers/shop owners will have to submit to regular inspections and certification, similar to what is required of export produce.
Questions have been asked about some of the fresh produce sold in Kenya, with suspicions that some of it is grown with sewage and other polluted water.
The proposed market, which is expected to open in July, will contain sections for fresh produce, Beef, fish and poultry products, dairy produce and a grains section. The Mwea Rice Centre within the market, for example, promises to provide “Mwea rice at Mwea prices” – a potentially revolutionary approach that will ensure great conveniences for Nairobi shoppers keen on the popular Pishori rice.
The market developers say they will encourage stall owners to contract and supervise small-scale growers to ensure sufficient supplies within the set quality guidelines while also spreading the benefits of the market to more farmers.
By aggregating produce from the many farmers in the market, they hope to create a secondary outlet for supplying institutional customers such as hotels, restaurants, schools and hospitals. This will ensure and an expansive market potential that can provide an outlet for thousands of farmers.
“We will encourage shop owners to sign up outgrowers across the country, and even to work with County Governments where necessary. This way we can create an efficient road to market for the exceptional pineapple growers of Homa Bay, the sweet potato farmers in Kakamega and the honey producers in Baringo and elsewhere. We are creating a platform that offers guarantees at both the supply and demand side of the equation and hopefully we can provide some stability for everyone,” says Mr Munene.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.