Key Membership Terms and Definitions: Source: Section 2 “Interpretation” of KOMEX Rulebook 2023
“Affiliate Member” means a person admitted as a member of KOMEX conferring a right to trade in goods or services on KOMEX on their own behalf or to offer support to members of the KOMEX Eco-system;
“Authorized Representative” means a person authorized through a power of attorney (in the case of individual members) or by letter of appointment (in the case of Body Corporates) by a member to represent and act on behalf of that member;
“Body Corporate” means any entity which is registered or incorporated under any law and has a legal personality distinct from its members or shareholders, and includes partnership, trust, cooperative society, savings and credit cooperative society, community based organization or any other association of persons recognized as a corporate body under any law in Kenya;
“Certified Warehouse” means a warehouse approved and designated by the KOMEX for making deliveries to and taking deliveries from in fulfilling contractual obligations resulting from transactions in commodities;
“Clearing House” means Clearing House of KOMEX, or an entity designated, providing the services of settlement of transactions to the KOMEX members, and guaranteeing settlement by delivery or otherwise of the obligations to the clearing members, on behalf of the KOMEX;
“Clearing Member” means a member of the KOMEX who has the right to clear transactions in commodities that are executed in the trading system of the KOMEX;
“Client” means a registered member of KOMEX on whose account a commodity broker carries on trading in any spot commodity contract, but does not include directors, key personnel, representatives and related companies of the commodity broker;
“Commodity Dealer” means a Member that is engaged in the buying, selling, trading, or brokering of commodities, either for their own account or on behalf of others;
“Member” means any person admitted to membership of KOMEX and includes the trading member, commodity broker, clearing and settlement member, and affiliate member;
“Trading Member” means a person who is admitted by KOMEX as a member conferring a right to trade on the KOMEX Trading System and who may be allowed to make deals for themselves for settlement through the Clearing House of KOMEX;
“Trading-cum-Member” means a person who is admitted by KOMEX as a member of the KOMEX conferring a right to trade through the Clearing House of KOMEX and who may be allowed to make deals for themselves as well as on behalf of the clients and settle such deals only; and
“Warehouse Operator” means the warehouse service provider registered with the KOMEX and licensed by the relevant authorities.
Membership Categories: Source: Section 9(2) “Classes of Membership” of KOMEX Rulebook 2023
The following KOMEX Membership Categories have been approved by the Capital Markets Authority:
# | Category | Sub-Category | Eligible Activities | Application Fees (KES.) | Membership Fees (KES.) |
1 | Trading Member (Body Corporate/ Individual) | 1.1 Organizations | Can execute trades on own account or supported by Commodity Brokers | ||
1.2 Individuals | Can only trade through Commodity Brokers | ||||
2 |
Commodity Brokers (Body Corporate) |
Trading-cum-Clearing Brokerage Firms | Executing trades as agents of Corporate or Individual Trading Members or on their own account | ||
3 | Clearing and Settlement Member (Body Corporate) | 3.1 Warehouse Operators | Warehousing Logistics Services and Collateral Management Services | ||
3.2 Settlement Banks | Banking & Financial Services | ||||
4 | Affiliate Member (Body Corporate) | 4.1 Private Sector Organizations | Input Supplies; Quality Inspection and Testing Services; Freight Transport and Logistics Services; Insurance Services; Payment Services and Fintechs; Business Member Organizations; Business Development Services; and, Trade Support Services | ||
4.2 Public Sector Organizations | Sector Regulators, Ministries, Departments and Agencies (MDAs) | ||||
4.3 Development Partners | Non-Governmental Organizations; Social Enterprises; and, Community-Based Organizations, supporting farmers/producers, traders, and KOMEX |
Notes:
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- Application fees (one-off) paid in advance
- Membership fees (annual) paid in advance
- Fees are non-refundable
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KOMEX Value Proposition to Members
- Access to a regulated digital marketplace for structured trading of primary and processed agricultural and non-agricultural commodities with verified, vetted, and regulated market participants;
- An alternative competitive marketplace for domestic, import, and export trading of commodities with transparent framework offtake and supply contracts;
- Enhanced safety and quality assurance of food commodities for retail consumers, institutions, processors, and manufacturers through enforced SPS measures, quality standards grading, inspection, and testing;
- Improved earnings for producers, processors, and traders through market-driven price discovery, timely settlement of trades (pre-funded);
- Market failure derisking through contributory Settlement Guarantee Fund (SGF);
- Access to negotiated Trade Support Services, Banking, Finance, Insurance, and transport logistics;
- Access to Warehouse Receipt System (WRS) regulated quality storage and collateral management;
- Access to Special Trading Windows (boards) for special procurement requirements;
- Access to market information and trade data for informed decision-making; and,
- Investment opportunities for private sector in commodities markets through input supplies, commercial production, processing, warehousing, quality inspection and testing, trading, trade finance, trade support, and logistics.