Kenya has included potatoes in the warehouse receipt system (WRS). This system already includes corn, beans, green peas, coffee, wheat and rice in the country.
Samuel Ogolla, Chief Executive Officer of the Kenya Warehouse Receipts Board (WRS), said the system would enable potato growers to access credit using receipts issued for goods held in controlled warehouses as collateral.
The system also aims to end the exploitation of farmers by brokers, as the farmers themselves will now be able to sell their produce at good prices.
Ogolla noted that the WRS will help improve the storage of goods, reduce potato losses after harvest, increase the income of farmers, traders and service providers in the agricultural sector.
In June 2019, the Kenyan Parliament passed the Warehouse Receipt System Act, providing the legal basis for its development. Later that month, President Uhuru Kenyatta approved a bill for a warehouse receipt system. The law provides for a system whereby warehouse receipts are issued by licensed warehouses for the supply of agricultural products produced in Kenya.
“The receipt is proof of ownership. The document can be used as collateral for obtaining a bank loan. These systems allow producers to defer the sale of their products from the end of the harvest until prices are generally more favorable,” said the Chief Executive Officer of the Kenya Warehouse Receipts Board (WRS) .
“WRS aims to ensure that Kenya trades not only in grains, but also in other goods. Private operators providing storage space must be registered with the Warehouse Receipts Board and the Agriculture and Food Administration (AFA) to be eligible for a WSR,” said the CEO.