The rollout of the much-touted Warehouse Receipting System has flopped due to lack of legislation.
It was to have started in November.
It won't be used for some time and farmers want to be paid cash. It's not clear when the new system will be rolled out.
It's also not clear yet exactly what is responsible for the failed implementation this year. Many farmers had been wary and said they didn't understand the new system.
The WRS board has been unable to figure out a way forward this year but promised that legislation would be put in place.
The board will come up with WRS legislation that will be subjected to public participation before approval and roll-out.
Despite more than 12 NCPB stores having been approved for use by farmers under the WRS, so far no maize has been delivered to the board under the system.
The WRS board led by chairperson Jane Ngige was in Eldoret, Kitale and Nakuru to meet farmers last week. No clear way forward was decided on how the system would be applied.
The government had said WRS was very clear and an excellent way to improve grain marketing and improve farmers' livelihoods.
Farmers would be issued official proof-of-ownership receipts for stored grain at certified stores. They would be able to use them as collateral for loans and other financial assistance.
They could store their grain until prices improve.
“So many issues are still in discussion including legislation or rules that will guide the WRS, director of the Kenya Farmers Association Kipkorir Menjo said.
"For example, farmers want to know the minimum amount of maize that can be kept under WRS and for how long, among other issues," he said.
He said the government may have to implement WRS in phases because most farmers, especially small-scale growers, prefer cash on delivery. They need prompt payment to take care of their immediate needs.
“Large-scale farmers can store maize for some time but those who are small scale need money immediately and don’t want to store maize," Menjo said.
Ngige and her team have said the system will help deal with critical challenges facing cereals farmers, including marketing and wastage during harvesting.
She asked farmers to adopt the new system to improve agricultural productivity.
“It is working very well in many other countries like South Africa. Studies have confirmed it will be very useful to our farmers," she said after meeting growers last week.
Ngige said the WRS council will help farmers deal with the wastage on the farms, during storage and in marketing.
“We want to see how to improve productivity through storage facilities, aggregation and mainstreaming markets as well as quality assurance,” she said.
National Cereals and Produce Board managing director Joseph Kimote has said they have sufficient facilities to ensure success of the new system.
Some NCPB stores will be leased out to private entities that will be licensed by the Agriculture Food Authority.
Kimote said under WRS farmers will be charged a monthly storage fee of Sh3 per 50kg bag of maize.
Uasin Gishu Deputy Governor Daniel Chemno says the board should educate farmers intensively on the system.
Chemno said the system would be a great help to farmers who do not have enough space to store their produce.
He asked the government not to force farmers into the WRS system.
“The cereals sector is now fully liberalised. Different players can come in and that’s what the new concept is all about," Chemno said.
Uasin Gishu Agriculture executive Samuel Yego said the system has worked well in India and South Africa and expressed optimism it will
(Edited by V. Graham)
