SMS-based Commodity Pricing

-Project status: Active
-Sectors: For-profit Activity
-Funding source: Private Investment Funded
-Location of project: Kenya | Sub-Saharan Africa
-Project type: BOP Technology Activity | Agriculture Activity | IT Hardware Activity | Software Activity | Telecommunications and IT Activity

Managing Organization: Kenya Agricultural Commodity Exchange (KACE)

Managing Organization URL:
http://www.kacekenya.com


Contact Name: Abraham Okola

Contact Email: kace@kacekenya.com

Contact Phone: 254-2-4441829

Affiliated Organizations: Safaricom, KenCell Communications


Activity Description: The Kenya Agricultural Commodity Exchange (KACE), in conjunction with mobile telephone company Safaricom, has developed a system to keep farmers better informed of commodity market prices. Short Message System (SMS) technology is behind the system, which will cost farmers only 15 shillings (about $0.20 USD) per use, giving them access to price information that was previously only available directly at the market. The system includes prices for all major agricultural commodities and their prices at markets throughout Kenya. KACE is encouraging farmers of the same crop to check prices in a shared-use model, spreading the cost of the SMS over more people. The SMS system allows farmers to bypass exploitative middlemen, who often charge below-market rates to farmers with few other options in terms of crop sales. In addition, the system will help farmers manage their trips to market, which can become expensive in terms of travel costs and lost time in the fields.

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