AFEX Fair Trade has been granted a licence to operate as a warehouse receipt operator. The permit which was issued by the Warehouse Receipt System Cou
AFEX Fair Trade has been granted a licence to operate as a warehouse receipt operator. The permit which was issued by the Warehouse Receipt System Council (WRSC) marks the first certification granted to a private sector firm. Trade Principal Secretary Alfred K’ombudo hailed the development saying the government has plans of increasing certified warehouses in the country for safe storage of farmers’ produce.
“We want to strengthen our Warehouse Receipt System (WRS). This is because it is key to ensuring that post-harvest losses are greatly reduced and that farmers can rely on well-established and well-managed facilities,” said K’ombudo.
Warehouse Receipt System
Warehouse Receipt System which was launched in 2020 was set up for farmers to have their produce in certified warehouses where they can be tested, cleaned, graded and stored with the owners of the commodity receiving a receipt as proof of ownership. This provides farmers with the option to sell their produce when prices are favourable, while also serving to cut post-harvest losses.
Last year, AFEX launched a $1 million (Sh124.9 million) loan programme aimed at allowing farmers to gain access to seed and fertiliser for their crops to mitigate the ever-rising production costs. AFEX Fair Trade currently has 17 warehouses spread across two counties in the country and has registered over 11,000 farmers and traded over 11,000 tonnes of maize.
According to firm’s managing director Tabitha Njuguna, the certification will enable them to do more. The firm targets to transact with 100,000 farmers, and trade over 500,000 tonnes of commodities by 2025.
“The benefits of functional warehouse receipt systems are well documented, especially for farmers. Particularly exciting for us is the ability to improve the livelihoods of farmers who work with us,” said Ms Njuguna.