Kenya certifies first privately run warehouse

Business
By Macharia Kamau | Feb 08, 2023
Trade PS Alfred Ombudo K'Ombudo during his vetting before the National Assembly Departmental Committee on Trade on November 15, 2022. [Boniface Okendo, Standard]

Afex Fair Trade, Kenya, a farmer service company in Kenya has received a certification for one of its warehouses as a warehouse receipt operator.

The Warehouse Receipt System Council (WRSC) at the Soy Mateeny warehouse in Uasin Gishu County did the certification, marking the first time that a warehouse receipt operator license has been issued to a private sector company.

Principal Secretary State Department of Trade, Alfred K'ombudo, commended Afex and said that the government has plans of increasing certified warehouses across the country for the safe storage of farmers' produce.

"We want to strengthen our Warehouse Receipt System (WRS). This is because it's 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, speaking at the certification of the warehouse.

Afex, which began operations in Kenya in 2021, has 17 warehouses spread across two counties in Kenya. It has registered over 11,000farmers and traded over 11,000 metric tonnes of maize.

The company's Managing Director, Tabitha Njuguna, indicates that this certification will enable it to do more.

"Warehouse receipt systems are fundamental to Afex's work in unlocking finance and further strengthening financial inclusion for farmers across Kenya. 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 Njuguna.

The Warehouse Receipt System, which was launched in July 2020 by the Agriculture Ministry, enables farmers to hold produce in certified warehouses where they can be tested, cleaned, graded, and then stored, with the owners of the commodity receiving a receipt as proof of ownership.

This provides the farmers with the option to sell their produce when prices are favourable, while also serving the purpose of reducing post-harvest losses in the country.

"This certification opens the space for private investment and participation in the Warehouse Receipt System in Kenya," said Samwel Ogola CEO of WRSC.

Share this story
Farmers urge Tea Board of Kenya to withdraw new levy
Farmers in Kericho have called on the Tea Board of Kenya to withdraw the newly introduced 0.8 per cent tea levy.
Bottled water exempted from excise duty
The changes took effect on July 1, 2026, after the Finance Act amended the First Schedule to the Excise Duty Act, Cap 472.
South Korea to use AI tax windfall to fund public projects
South Korea's government plans to use a windfall in tax income from artificial intelligence chipmakers to set up a fund for public infrastructure projects, the presidential office said.
How local borrowing is stifling Kenya's infrastructure capital needs
A new report warns that Kenya’s growing reliance on domestic borrowing is crowding out long-term investment in infrastructure.
Nairobi International Financial Centre eyes Sh2.6b in investments from new firms
The Nairobi International Financial Centre has admitted a new set of firms that it says could help mobilise more than Sh2.6 billion ($200 million) in investments across several sectors.
.
RECOMMENDED NEWS