Kenya launches new grain storage system
The East African Grain Council has launched the Warehouse Receipt System (WRS) in Kenya that will cut out exploitative middlemen and unlock the commercial potential of farming.
The system allows farmers and traders to deposit maize
at a certified warehouse during the months of December to March and obtain a
warehouse receipt.
at a certified warehouse during the months of December to March and obtain a
warehouse receipt.
The move means that farmers can now use the receipt
to obtain money from Equity Bank while awaiting sale of their stored produce at
the most profitable time.
Its proponents forecast that the move will
increase maize production, and that of other cereals, by as much as of 300% and
comes as Kenya reels from an acute grain shortage accentuated by an undeveloped
market and political crisis. The warehouse receipts form the country’s first
organised commodity market.
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