Players in the agricultural sector are set to reap good returns from their activities when the Warehouse Receipt System (WRS) is fully operational.
The WRS is a state corporation officially established under the Warehouse Receipt Systems Act No. 8 of 2019 and was launched by the Agriculture CS Peter Munya on July 29, 2020.
The system offers farmers and traders a channel through which they deposit their commodities and produce in certified warehouses and are issued with a warehouse receipt (WR) as a proof of ownership.
Warehouse Receipt System Council Friday launched its activities in Nyeri County to sensitize the devolved unit officials and farmers on the undertakings of the newly established state corporation.
Speaking at a press briefing in Nyeri town, the chairperson of the council Mrs Jane Mumbi Ngige highlighted its mandate, which include partnering with the different warehouse operators across the counties and coming up with regulatory measures.
Mrs Ngige said the regulatory measures act as a safeguard to the farmers and traders’ commodities, reduce post-harvest losses and provide a collateral for borrowing using a warehouse receipt as well as introduce a well-organized and efficient market for small scale farmers.
She added that the warehouse operators sample, weigh, grade, dry, fumigate and store the commodities and issue a receipt to the depositor (Owner of the commodity).
Ngige further said that the depositor in turn can sell the commodity to traders and consumers at any given time most preferably when the prices are more favourable.
Speaking during the same occasion, Nyeri County Secretary Mr Benjamin Gachichio said the county was ready to embrace the system considering the favourable weather conditions prevailing in the area, vast fertile agricultural lands, several large warehouses and the railway line that traverses the county.
Gachichio added that the county will also identify the preferable warehouses and license them appropriately to ensure farmers develop confidence with the system.
Nyeri County CEC Member in charge of the Agriculture, Livestock and Fisheries department Mr James Wachichi echoed Gachichio sentiments saying that they would sensitize farmers on the various benefits they would acquire from WRS.
The WRS system has been implemented in South Africa, Ethiopia and Rwanda and is now set to gain momentum in Kenya.
CEC member in charge of cooperative development Diana Kendi said that WRS would create more job opportunities for the youths directly or indirectly through the WRS value chain.
Kendi said the region is endowed with a pool of learned, innovators, talented and industrious young people.