Warehouse receipt system to transform agriculture with a new strategic plan

Participants during the launch of the Warehouse Receipt System Council (WRSC) Strategic Plan 2023-2027 and the Warehouse Receipt Financing Manual in Nairobi. [Nanjinia Wamuswa, Standard] Farmers are set to gain better access to finance, markets and economic opportunities as the Warehouse Receipt System (WRS) transforms agricultural commodities into bankable and tradable assets. This development follows the launch of the Warehouse Receipt System Council (WRSC) Strategic Plan 2023-2027 and the Warehouse Receipt Financing Manual, which are expected to modernise agriculture through enhanced financial empowerment. Government officials, development partners and private sector stakeholders hailed the launch as a transformative milestone for structured trade and inclusive financing in the country. Principal Secretary in the State Department of Trade Regina Ombam said the move will boost market linkages and stronger value chains. "We are not just launching two documents, but a strategic direction for agricultural and economic transformation. This Strategic Plan is a declaration of intent. We are committing to results that include expanded farmer access, increased financial inclusion, better market linkages and stronger value chains," she explains. The WRS allows producers to deposit commodities in certified warehouses and receive a receipt that can be traded or used as collateral. This system addresses persistent challenges in the agricultural sector, such as post-harvest losses, limited market access and high dependency on informal traders. "The WRS transforms commodities into bankable assets, stimulates investment in storage infrastructure and ensures transparency and traceability in trade. It is a game-changing solution aligned with Kenya's vision to become an industrialised and food-secure nation," said Ombam. WRSC acting CEO Lucy Komen described the strategic plan as a blueprint for transformation, detailing four strategic pillars, including expanding a national warehouse network, building stakeholder capacity, improving operational reliability and strengthening governance and risk management. "We are now ready for take-off. This plan defines the path forward, it's not just a document but a roadmap that aligns Kenya's agricultural trade with regional and global aspirations," Lucy explained. The WRSC has already made notable progress. To date, 25 warehouses have been certified, 15 financial institutions onboarded, and 40 warehouse receipts registered in the central registry. She, however, acknowledges challenges such as low uptake among producers and a lack of commodity trading platforms. "These are not barriers, but strategic opportunities. With the Warehouse Receipt System Amendment Bill 2025 in progress, we will unlock the full potential of private sector participation." The Warehouse Receipt Financing Manual, launched alongside the Strategic Plan, provides clear, standardised procedures for financial institutions, farmers, aggregators and traders to navigate warehouse receipt financing. Chairperson of the WRSC Felicity Biriri praised the manual for its role in linking agriculture to finance. "This tool bridges the gap between the agricultural and financial sectors. It opens doors to credit, allowing producers to invest in better production, post-harvest handling and marketing," she explained. Biriri emphasized that both documents were created through extensive stakeholder engagement and with a spirit of inclusivity. "The strategic plan gives us strategic coherence and shared goals. The system must work for all, including smallholder farmers, large traders, warehouse operators and financiers alike." She also reaffirmed the council's regulatory commitment to certify storage infrastructure, enforce standards and ensure food safety and efficient trade. Chairperson of the WRSC Committee Christine Mwai-Marandu described the launch as a significant step forward in strengthening Kenya's agricultural value chains and food systems. She said the initiative promotes improved food safety and robust market systems while unlocking access to affordable credit for farmers. "By formalising roles and responsibilities for all stakeholders, the manual enhances trust and accountability. It is a dynamic tool that will evolve with the sector and support the development of new financial products," Christine explains. The stakeholders emphasise that these documents are not symbolic but actionable tools that must deliver real impact. The government and WRSC committed to translating them into outcomes that improve rural livelihoods, reduce post-harvest losses and boost food security. The PS reiterated the government's full support, "This launch must not be treated as a routine event or a box-ticking exercise. It is a call to action. Let it mark the beginning of a new era in structured trade, financial empowerment, and agricultural modernisation." As the WRSC moves to implement its strategic plan and promote use of the financing manual, expectations are high that Kenya is on the brink of a revolution in how agricultural commodities are stored, valued and traded.

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