This archive report was first published on 8 December 2019.
On December 8, 2019, the Ministry of Agriculture announced plans to roll out the Warehouse Receipting System (WRS) to benefit farmers.
The system, which was signed into law by President Uhuru Kenyatta in June 2019, will allow farmers to deposit grain at the National Cereals and Produce Board (NCPB) depots for storage and sell once the price has stabilised.
According to Chief Administrative Secretary in the Ministry of Agriculture Andrew Tuimur, the WRS will prevent farmers from selling in a rush when the market is flooded, making them victims of low market prices.
Dr. Tuimur stated that farmers who deposit maize in the warehouse will access credit against issued receipts.
The private sector will also be incorporated at a later date, where they will be licensed and allowed to trade with farmers.
However, this is not the first time the government has tried to establish the WRS, as it was previously started by NCPB in 2010 but failed to gain traction among farmers.
With an estimated 80 percent of Kenya's population living in rural areas and relying on small-scale agriculture for food and income, the WRS is expected to improve profitability, liquidity, and price stability in the trade of agricultural commodities.
