The Cabinet Secretary for Trade and Investments, Moses Kuria, on Tuesday, June 13, announced cheaper loans and storage spaces for cereal traders and farmers.
In a notice through the Warehouse Receipt System Council (WRSC), the ministry called on Kenyans to take advantage of the warehouses provided by the government countrywide to prevent post-harvest losses.
According to the council, those who utilised the storage spaces would access cheap loans for business, with the ministry using the stored products as collateral.
Under the arrangement, the ministry issues a trader with a receipt reflecting the amount and quality of the grain stored, as well as the size of the warehouse acquired.
“Using their stored crops as collateral, they can obtain loans to invest in their farming ventures, fostering growth and financial independence.
“Not only does it streamline the storage and distribution of agricultural commodities, but it also holds immense potential for empowering women and youth in these sectors,” read the statement in part.
According to the Ministry of Agriculture, over 3.5 million registered farmers can access affordable loans.
Reason for Storage at the Facilities
According to the council, the system was implemented to enable farmers to earn more from their produce by storing them securely as they negotiated the best prices or waited for favourable ones.
Additionally, it protects farmers from post-harvest losses, especially during a bumper harvest when farmers lack storage facilities.
Further, the stores protect farmers from middlemen who take advantage of the lack of storage facilities to buy grains at low prices.
Qualifications for Warehouse Operators
The Ministry also called on individuals interested in becoming warehouse operators to submit their applications provided they met the following qualifications;
1. They were able to provide a certificate of Compliance from the Food Directorate, obtained after the warehouse is inspected.
2. The applicant was a legal entity registered in Kenya.
3. The applicant had a viable business plan.
4. Provided a valid insurance cover against all risks for commodities stored.
5. Demonstrated the ability to raise adequate capital to finance initial investment and three years of operational costs.
The council directed interested persons to submit applications in written form or hard copies or submit a soft copy to info@wrsc.go.ke.
