Industry PS Juma Mukhwana speaks during the official launch of the Electronic Warehouse Receipt System Central Registry, in Nairobi/ HANDOUTThe government is banking on the electronic Warehouse
Receipt System to modernise agricultural commodity trade and
cut post-harvest losses.
Launched on Wednesday after a piloting, the digital
platform is expected to unlock access to structured markets and financing
for farmers and agribusinesses.
The system to be managed by the Warehouse Receipt System
Council (WRSC) is backed by TradeMark Africa with funding from the British
High Commission in Nairobi.
It is a secure government-owned digital platform that
automates, centralises and manages warehouse receipts issued under the
Warehouse Receipt System.
Warehouse
receipts are legal documents issued by licensed warehouse operators as evidence
that specific, quality-certified commodities such as grain, coffee, have been
deposited, acting as a document of title, collateral for loans or a negotiable
instrument for trading.
They enable
farmers to store goods, avoiding post-harvest price dips and improve financial
liquidity.
According to the Warehousing council, the platform enhances
transparency, traceability and trust, enabling seamless participation by
farmers, warehouse operators, financial institutions, traders, regulators and
other market actors across the agricultural value chain.
Supported by the Ministry of Investments, Trade, and
Industry through the State Department for Trade, the launch marks Kenya’s
transition from pilot implementation to national adoption of a structured and
digitised Warehouse Receipt System.
It positions the eWRS-CR as a critical pillar in
strengthening agricultural markets and improving farmer access to finance.
Speaking during the launch in Nairobi, Industry PS Juma
Mukhwana emphasised the platform’s role in building trust and catalyzing
participation across the agricultural value chain.
“By enhancing transparency, strengthening trust and enabling
access to finance, this system empowers farmers, attracts private sector
investment and contributes to Kenya’s broader economic transformation,” Mukhwana
said.
Agriculture remains central to Kenya’s economy, with
smallholder farmers contributing over 75 per cent of national agricultural
output.
However, access to formal credit remains limited, with less
than five per cent of bank lending directed to the sector.
Post-harvest losses, estimated at 30–40 per cent for some
commodities, continue to undermine farmer incomes and national food security.
The eWRS-Central Registry addresses these challenges by
enabling farmers and commodity owners to safely store produce in certified
warehouses and receive electronic warehouse receipts as proof of ownership.
These receipts can be used as collateral to access
financing, empowering farmers to meet immediate financial needs while avoiding
distress sales and enabling them to sell when market conditions are good.
Warehouse Receipt System Council chairman Patrick Mbogo said:
“The system lays a firm foundation for structured agricultural trade and
positions Kenya as a regional leader in agricultural market innovation.”
WRSC acting CEO and Registrar, Lucy Komen, noted a growing
private sector uptake of the system which she termed “critical” to its success.
TradeMark Africa’s Kenya Country Director, Lillian Mwai affirmed
the organisation’s commitment to strengthening structured agricultural trade
and improving market access for farmers and agribusinesses.
“By improving traceability and enabling access to finance,
this platform empowers farmers and agribusinesses to compete more effectively
in domestic and regional trade. And this is how our wider ambition of the No
Stop Border becomes practical, by fixing systems at source,” she said.
Deputy High Commissioner and development director at the
British High Commission in Kenya, Diana Dalton, also reaffirmed the UK’s commitment
to supporting Kenya’s agricultural modernisation and financial inclusion
agenda.
“Kenya and the UK are injecting innovation into agriculture.
Not only does this system put more money into farmers pockets, but it also
means produce like maize can be used to take out a short-term loan to pay school
fees, without a farmer selling their produce at a cheaper price,” Dalton said.
So far, 114 warehouse receipts for nearly 600,000 Kgs of
deposited commodities have been registered.