The Kenya National Farmers’ Federation (KENAFF) and the Warehouse Receipt System Council (WRSC) formalized a strategic collaboration through the signing of a Memorandum of Understanding (MoU) at the Farmers’ Conference Centre in Thogoto, Wednesday 31st 2024. The MoU was signed by KENAFF’s CEO Dr. Daniel Mwendah M’Mailutha, and Acting CEO of WRSC Ms. Lucy Komen. The event was attended by key representatives from both organizations.
Present at the signing were Fredrick Okoth, (Head of Investment Promotion and Partnerships); Fredrick Wang’aha, (Investment Promotion and Partnerships); Jimmy Magara, (Investment Promotion and Partnerships); and Solomon Amanya, Corporate Communication, all from WRSC. KENAFF was represented by Brenda Sakong,(Technical Assistant to the CEO; (Eliud Laichena, Head of Business Development Service); Nebarts Korir, (Personal Assistant to the CEO); Magdaline Alukhava, (Head of ICT); and Raymond Mwambia, (Accounts Manager.)
The MoU underscores a mutual commitment to align the mandates and functions of both organizations. This partnership aims to advance the adoption of the Warehouse Receipt System (WRS) among value chain actors by enhancing sensitization, awareness, training, and capacity building for farmers and stakeholders. Key focus areas include structured commodity trade, post-harvest management, and access to quality storage facilities, market access, and linkages. The collaboration also seeks to foster public-private partnerships and support the government’s bottom-up economic agenda.
In his address, Dr. Mwendah emphasized the significance of the partnership, stating, “We have a network of nearly 1.1 million farmers, whom this council is aiming to support. The vision behind this council is noble, and KENAFF is committed to ensuring that farmers lead progressively better lives. We anticipate a future where the council will extend its services beyond milk, potatoes, and maize.” Dr. Mwendah assured that KENAFF’s board fully supports the initiative and will collaborate across all counties that KENAFF is present to demonstrate to farmers how this partnership will improve their trading environment and enhance their livelihood.
Brief about WRSC
The Warehouse Receipt System Council (WRSC) is tasked with implementing the Warehouse Receipt System Act No. 8 of 2019. WRSC’s mandate includes overseeing the establishment, regulation, and development of the WRS, aimed at reducing post-harvest losses and inefficiencies in the agricultural value chain. By managing agricultural commodities through licensed warehouse operators and certified warehouses, the WRS facilitates increased incomes for farmers and traders through direct market access and affordable credit options. WRSC has partnered with seven financial institutions to provide financing using warehouse receipts as collateral and has registered a collateral manager to support the system.
Ms. Komen highlighted the benefits of the partnership, emphasizing that the structured system will allow farmers to transition from being price takers to price negotiators. She noted the importance of quality control in warehouses for cereal millers and agro-processors, who will benefit from reliable, forward contracts. Additionally, Ms. Komen outlined WRSC’s efforts to integrate the dairy value chain, with plans to convert milk into powder and use warehouse receipts to facilitate processing and financing.
Ms. Komen further highlighted that WRSC is also exploring collaborations with development fund firms to offer lower-interest loans to farmers, with 1.1 million members under KENAFF positioned to be primary beneficiaries. “WRSC is coming into the space of dairy value chain whereby they have been having discussions with the new KCC dairy board of Kenya and the policy direction that they are taking is that milk be converted into powder, put in warehouse receipt then when ready to reconstitute they sell or exchange the warehouse receipt.”
The council has cooperative-owned warehouses, such as one in Nakuru County, where KENAFF members will act as depositors and owners of warehouse receipts, as well as private and government-owned warehouses, such as the National Cereals and Produce Board (NCPB.)
She encouraged farmers to utilize warehouse facilities to enhance marketability and secure better financial opportunities.
The partnership between KENAFF and WRSC represents a significant step towards transforming Kenya’s agricultural sector through innovative storage and financing solutions.
