The government plans to put the Warehouse Receipt System into full operation, despite its failure after several attempts.
Trade Principal Secretary Alfred Ombudo K'Ombudo said the WRS system is key in the government’s effort to enhance productivity in agricultural agriculture activity.
Speaking after visiting the Eldoret NCPB depot, the PS said strengthening the WRS would ensure farmers have access to good storage facilities to help reduce post-harvest losses.
“Using the Warehouse Receipting System which we’re looking to revamp will allow farmers access to financial tools early enough as they wait for better prices,”PS K'Ombudo said.
The system will also allow access to safe storage that is graded and sorted.
“It's workable and we are in discussion with all relevant stakeholders so we are all on board as we plan to make sure WRS works,”he said. The PS further said the government will team up with stakeholders to increase the number of stores that provide WRS.
It’s a process whereby producers deposit their commodities in certified warehouses and are issued with a Warehouse Receipt.
The receipts enable them to access credit or any other support as they wait for good market prices.
Parliament passed the Warehouse Receipts Systems Act No. 8 0f 2019 in June 2019, thereby setting out a legal framework for the development and governing of a Warehouse Receipt System in Kenya.
The Warehouse Receipt System Council, the body responsible for establishment, maintenance and development of the WRS for agricultural commodities produced in Kenya was inaugurated on July 29,2020.
WRS can help to reduce post-harvest losses from 40 per cent to 10 per cent. Currently post-harvest losses stand at 30 to 40% due to on farm shortage in most parts of the country.
Other benefits include quality assurance for the stored produce, it promotes aggregation or collection of produce from small-scale farmers, availability of credit and flexibility in the sale process .
Already five certified warehouses for the system are at the National Cereals and Produce Board (NCPB) depots in Kitale, Eldoret, Nakuru, Nairobi and Meru.
The PS said all requirements for successful operations of the WRS were in place and farmers and other stakeholders would be informed so that they fully adopt it.
Currently, the government registering farmers in the county and more than three million of them have been listed. They will also be encouraged to use the WRS.
During the visit at the NCPB, the PS was accompanied by Uasin Gishu county commissioner Dr Eddyson Nyale, acting chief officer for Agriculture Reuben Seroney and acting county cooperatives commissioner Rosylne Rae.
((Edited by V. Graham)