Warehouse receipt system in Kenya open doors to maize farmers

Maize farmers in Kenya can now deposit their grains to Warehouse Receipting System (WRS). Mr Samuel Ogola, chief executive officer of the Warehouse Receipt Council confirmed the report and said the move intends to aid farmers boost their finances.

The WRS which was launched in January this year is set to receive its maize crop this season. Farmers in parts of the North Rift have started harvesting and will be able to deposit the grains in exchange for receipts which they can cash to meet their immediate financial needs.

WRS process

The process will involve farmers storing their maize at certified stores as they wait for the prices to stabilise. They are then issued with receipts, which they can cash at financial institutions participating in the programme, an amount that is recovered after they have sold their produce.  There are currently 10 certified stores in Nakuru, Kitale, Moi’s Bridge, and Eldoret with a capacity to store at least 12 million bags. Farmers will pay Sh48 for a 90-kilogramme bag in the first month of storage with the subsequent months attracting a Sh9 charge.

“We encourage farmers not to sell at prices below their cost of production because they are in a hurry to meet their financial needs. They can store it at WRS and obtain receipts that they can use to obtain credit. Farmers will not be required to pay immediately when they deposit their grain. The amount will be recovered later after their grain is sold,” said Mr Ogola.