Electronic Warehouse Receipt System Introduced to Enhance Farmer Financing

by KenyaPolls

The Ministry of Investment, Trade, and Industry has introduced the Electronic Warehouse Receipt System (E-WRS), designed to support farmers and agribusinesses throughout the nation.

During the system launch, Warehouse Receipt System Council (WRSC) chairperson Patrick Mbogo explained that the platform will handle certification and licensing of warehouse operators and collateral managers, registration of depositors, and commodity deposits.

This system guarantees that farmers store their crops in certified facilities and obtain receipts as ownership proof, which can serve as loan collateral or negotiable instruments to improve farmer financial flexibility.

“The introduction of the E-WRS and central registry marks a vital advancement in unlocking financing, enhancing market efficiency, minimizing post-harvest losses, and supporting farmers and agribusinesses nationwide,” Mbogo stated on Wednesday, February 25.

“The electronic central registry launch demonstrates WRSC’s dedication to establishing a contemporary, protected, and digitally-driven agricultural storage and trading environment benefiting farmers, traders, financiers, and the wider economy,” he added.

WRSC Chief Executive Officer Lucy Komen reported that the new system has already distributed 144 receipts, with 44 of them receiving financing during the pilot phase.

Komen also disclosed that over 11,744 bags have been delivered to warehouses accredited and licensed under the system, which he emphasized will significantly contribute to enhancing the nation’s food security structure.

“This solution tackles post-harvest losses, currently estimated at 30–40 percent across the agricultural sector, by providing improved access to quality, convenient storage facilities for farmers and aggregators,” the CEO stated.

Director of Domestic Trade Elizabeth Miguda noted that the new system will be crucial for creating employment opportunities in the nation and facilitating access to international markets.

“The Electronic Warehouse Receipt System has the capability to revolutionize Kenya’s agricultural sector. It is transformative for farmers by generating improved incomes, fostering job creation throughout the value chain, and broadening market access,” she stated.

This announcement follows comments from Agriculture Cabinet Secretary Mutahi Kagwe, who emphasized the necessity for enhanced collaboration with private investors to expand climate-smart agriculture, adopt modern technologies, and encourage data-based farming approaches.

Speaking in Mombasa on Tuesday, February 24, Kagwe confirmed support for research, innovation, regulatory oversight, structured markets, livestock genetics, and professional development.

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