Kenya Planters Cooperative Union to entire derivatives market

The announcement of the board of directors' intention to list farmers’ shares at the NSE comes days after the organization signed an agreement with an Israeli firm – Green Arava to irrigate coffee farm.

The derivatives market, though much riskier, will yield higher returns for the coffee farmers, encourage speculation within the markets, and help with hedging market risk and liquidity. It will mean lower transaction costs for the farmers. Entry into the derivatives market is set to boost incomes for the farmers and attract increased investments in the coffee farming sector.

KPCU came out of receivership in 2014 and has been expanding its revenue streams to enable it pay loans and other debts accrued over the years. The Union will now be able to put to use the idle warehouses spread in all the coffee growing areas including Nairobi, Sagana, Meru, Nakuru, Kisumu, Kisii, Bungoma, Nanyuki and Tala.

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