- Menjo said the warehouse is a good concept but it needs to be domesticated to suit the small-scale farmer’s economic situation.
- The council has certified 10 stores in Mois Bridge, Kitale, Eldoret and Nakuru, which have the capacity to store at least 12 million bags.
Image: FILE
Farmers have been encouraged to use warehouses to store maize as one way of reducing post-harvest losses.
Warehouse Receipt Council chief executive officer Samuel Ogola said on Tuesday this will also help farmers avoid selling their produce at throwaway prices.
Harvesting of maize in the North Rift region, the country's bread basket, has started mainly in Uasin Gishu, Nandi and Kitale areas.
"I advise farmers to take their maize to National Cereals and Produce Board certified warehouses to avoid being exploited by brokers who buy at poor prices," he told the Star on the phone.
According to the Ministry of Agriculture, a Warehouse Receipt System (WRS) is a process where producers/farmers deposit their commodities in certified warehouses and are issued with a receipt which they can use to get farm inputs or access loans.
"We encourage farmers not to sell at prices below their cost of production because they are in a hurry to meet their financial needs. They can store it at WRS and obtain receipts that they can use to obtain credit,” Ogola said.
He said farmers who are not close to certified warehouses can take their grain to the nearest stores.
"They should then inform the WRS to come and certify or transfer the grain to a warehouse that has been certified," Ogola said.
The council has certified 10 stores in Mois Bridge, Kitale, Eldoret and Nakuru, which have the capacity to store at least 12 million bags.
Kenya Farmers Association chairman Kipkorir Menjo said harvesting has started in North Rift region.
"However harvest is low due to the cost of inputs, especially fertiliser, hence the yield is low. The total output for the year will be low and the country may have to import from outside to bridge the gap," he said.
"The low harvest is attributed to the high cost of production, unpredictable weather and arable land fragmentation which have changed to real estate."
Menjo said the warehouse receipt system model needs to be reworked so that it fits small-scale farmers in Kenya.
"Most farmers are small-scale and they do not have the luxury. They want to sell their produce at whatever price they will. For the small quantity, it will attract storage charges so the concept is good for large-scale people. There is need to domesticate it to suit the small-scale farmer’s economic situation," he said.
"This way farmers will be able to get a guaranteed minimum profit."
Ogola said farmers will pay Sh48 for a 90kg bag in the first month of storage with the subsequent months attracting Sh9.
Ogola said the first month’s fee is expensive because of the charges incurred in grading and fumigation of the grain.
He said the government will help farmers who have deposited their grain to get market for their produce by linking them to millers.
The price of maize in the North Rift has dropped from a high of Sh5,500 for a 90kg bag in June to Sh4,000 currently, with the value expected to drop further in the coming days as more stocks get to the market.
In June 2019, Parliament passed the Warehouse Receipts Systems Act No. 8 0f 2019.
This set out a legal framework for the development and governing of a Warehouse Receipt System in Kenya.
On July 29, 2020, the Warehouse Receipt System Council was inaugurated with the mandate to establish, maintain and develop the Warehouse Receipt System for agricultural commodities produced in Kenya.
Ogola said there are five NCPB certified warehouses in Kitale, Eldoret, Nakuru, Nairobi and Meru.
He said the benefits of the warehouse include reducing post-harvest losses, promoting aggregation of produce by small-scale farmers, availability of access to finance, creating flexibility in the sale process, reducing price volatility and improving liquidity.