Energy Product Derivatives - Kenya

Kenya

The nominal value in the Energy Product Derivatives market is projected to reach US$32.14bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.90% resulting in a projected total amount of US$42.81bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.19 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 188.90k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Kenya is experiencing significant growth and evolution in response to changing dynamics in the energy sector. Customer preferences are shifting towards more diverse and sophisticated investment options in the Energy Product Derivatives market.

Investors are increasingly looking for ways to hedge risks and capitalize on price fluctuations in energy products without directly owning physical commodities. Trends in the market show a rise in the demand for Energy Product Derivatives as Kenya continues to expand its energy infrastructure and explore alternative sources of energy. This growth is fueled by the need for efficient risk management tools and investment opportunities in the energy sector.

Local special circumstances, such as the government's focus on renewable energy projects and the volatility of global oil prices, are driving the development of the Energy Product Derivatives market in Kenya. These factors create opportunities for investors to participate in the market and navigate the changing landscape of the energy industry. Underlying macroeconomic factors, including economic growth, regulatory environment, and technological advancements, play a crucial role in shaping the Energy Product Derivatives market in Kenya.

As the country strives for energy security and sustainability, the market is expected to continue its expansion and attract a diverse range of participants looking to benefit from the opportunities presented in the sector.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.