National Launch of the Warehouse Receipt System in Kitale, Trans Nzoia County
The Cabinet Secretary, Ministry of Agriculture, Livestock, Fisheries & Cooperatives, Hon. Peter Munya MGH, EGH launched the Warehouse Receipt System in Trans Nzoia County on 13th January 2022. He termed the Warehouse Receipt System a solution to the challenges that they face after harvesting crops.
The launch of the Warehouse Receipt System marked a new dawn for agriculture in Kenya and especially for small-scale farmers who have endured long suffering as a result of limited access to credit due to lack of traditional collateral required by financial institutions, poor storage facilities and lack of a structured trading system that has left them at the mercy of middlemen/brokers.
The Warehouse Receipt System will now enable farmers to access credit by using the Warehouse Receipt as collateral, enable them to store their commodities in quality storage facilities where they are assured of quality and quantity assurance of their commodities in line with the commodity specific standards as well as give them bargaining power due to the negotiability and transferability of the warehouse receipt. The benefits will also accrue to traders and off-takers who will now have a go to place for quality commodities on demand. Furthermore, the WRS will also create an enabling environment for aggregation by small-scale farmers that will also make it easier for them to meet the demand for volumes while giving them better negotiating terms. The domino effect of all of this will be increased production due to easier access to input through enhanced access to credit as well as better returns that will aid in achieving the targets of food and nutrition security set under the Big 4 Agenda.