Commodities - Kenya

Kenya

The nominal value in the Commodities market is projected to reach US$116.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.06% resulting in a projected total amount of US$149.00bn by 2029.
The average price per contract in the Commodities market amounts to US$0.15 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 849.50k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Kenya has been experiencing notable developments and trends recently. Customer preferences in the Kenyan Commodities market are shifting towards more diverse investment options, reflecting a growing interest in alternative financial instruments.

Investors are increasingly looking for opportunities beyond traditional asset classes, seeking higher returns and portfolio diversification through Commodities. Trends in the market indicate a rising demand for Commodities trading in Kenya, driven by factors such as increased market access, technological advancements, and regulatory reforms. The growing awareness of the benefits of including Commodities in investment portfolios is attracting a wider range of market participants, including institutional investors and retail traders.

Local special circumstances in Kenya, such as the country's strategic location as a financial hub in East Africa and its stable economic growth, are contributing to the development of the Commodities market. The government's efforts to promote capital markets and attract foreign investments are creating a conducive environment for the expansion of Commodities trading activities in the country. Underlying macroeconomic factors, including favorable interest rates, stable inflation, and a growing middle class with disposable income, are supporting the growth of the Commodities market in Kenya.

As the economy continues to strengthen and diversify, investors are increasingly looking to Commodities as a viable investment option to hedge against inflation and currency risks. Overall, the Commodities market in Kenya is poised for further growth and development, driven by evolving customer preferences, favorable market trends, local special circumstances, and supportive macroeconomic factors.

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.