The International Finance Corporation (IFC) has offered US $1.9million (apprx Sh 237m) support to the Warehouse Receipt System Council (WRSC) in Kenya
The International Finance Corporation (IFC) has offered US $1.9million (apprx Sh 237m) support to the Warehouse Receipt System Council (WRSC) in Kenya that is set to aid in mobilising the private sector investment into the recently established 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.
Warehouse receipt system
IFC is set to offer technical advisory services to the WRSC in a three-year advisory programme which will run until August 2025. The advisory services will also involve the education of farmers on the benefits of utilising certified warehouses for crop storage in order to minimise post-harvest losses and get better prices for their produce. The IFC’s move to take a role in mobilising investment will likely see the entry of foreign firms into the sector—particularly in setting up of new warehouses—given its wide reach and network globally.
“Together with the Government of Kenya and the private sector, IFC will identify a pipeline of bankable investments in the warehousing value chain, including support to product development and investment into warehousing infrastructure, banking products, insurance, and collateral management. Additionally, IFC will support the development of operational guidelines for a model of supervised private warehouse operations – these guidelines will focus on warehouse quality, warehouse operations including inspections, grading and commodities standards,” said the IFC.