• In the Warehouse Receipt System, farmers/producers deposit their produce in a certified warehouses and are issued with a receipt as proof of ownership.
• The receipt can be used as collateral to access a loan from the bank.
Image: FILE
Farmers can breathe a sigh of relief as six warehouses are up and ready for storing the long rains maize harvest to reduce post-harvest losses.
The Warehouse Receipt Council(WRS) has so far certified six warehouses across the country.
Agriculture Principal Secretary Kello Harsama said farmers can utilise the warehouses to store their long rains harvest to reduce post-harvest losses which he said is a big challenge affecting maize production.
He said farmers will store their maize and have the flexibility to sell when prices are favourable instead of selling at a throw-away price like has been the norm.
Harsama explained that the Warehouse Receipt System is a process where farmers/producers or growers deposit their produce in certified warehouses and are issued with a receipt as proof of ownership. This document can be used as collateral to access a loan from the bank.
In June 2019, Parliament passed the Warehouse Receipts Systems Act, thereby setting out a legal framework for the development and governing of a WRS for the country registering private warehouse operators.
“When farmers harvest their produce, instead of rushing to the market which drives the prices down, they have places or warehouses where they can deposit their produce," he said.
"And in exchange, they get a receipt which is a legal tender and they are able to sell their produce when the price is right by just selling the receipts."
The PS said this will help remove the desperation from farmers because most of the time they don’t have anywhere to store their maize if they harvest a lot.
“The WRS serves two purposes, one, farmers are able to sell their produce when the price is right and earn more, and at the same time, farmers are able to reduce post-harvest losses, which are responsible for 30 per cent of the losses that they face,” Harsama said.
Lucy Komen who is in charge of Investment, Promotion and Partnership at the Warehouse Receipt Council said the licenced warehouse are in the grain basket counties of Uasin Gishu, Trans Noza and Meru.
“There are two in Uasin Gishu and one in Nakuru, Meru, Trans Nzoia and Nairobi,” she said.
The PS noted the need to create more awareness among farmers on WRS and how they can utilise them for maximum benefit in maize production.