Kisumu County in partnership with WRS to prevent post-harvest losses

By Jabali Media

The County government of Kisumu is set to embrace the Warehouse Receipt System (WRS), aimed at mitigating post-harvest losses.

The partnership seeks to provide market linkages, and increase access to affordable financing and farm inputs in the rice value chain.

The Warehouse Receipt System provides a timely solution that collateralizes agricultural commodities within a secure framework.

Speaking during a meeting with Kisumu County deputy governor Mathew Owili on Monday, Lucy Komen, Acting CEO of the WRS Council, stated, “The Warehouse Receipt System is a crucial tool for transforming agricultural trade in Kenya.”

“The National and County Governments are working to ensure that rice farmers get value for their crop. By providing access to quality storage, market linkages, and affordable credit, we must empower farmers to reduce post-harvest losses and increase crop incomes,” she added.

Dr. Owili said, “Rice is a priority value chain for Kisumu County. Unfortunately, there is undersupply to the market, with more demand than there is supply – and without access to structured marketing and storage, our farmers sell their rice at very low prices, then buy it back in its processed form, and as animal feed, at very high prices. We would like to work with the WRS to ensure farmers get a fair price for their rice.” 

When fully implemented, the WRS will provide access to quality storage facilities, help reduce post-harvest losses through professional storage services, guarantee the quality and quantity of rice stored, improve market linkages, and increase access to financing for farmers.

Commodities stored by county-licensed warehouse operators can be traded or used as collateral, for accessing credit from participating financial institutions.

Taneem Ahad, Senior Private Sector Specialist at IFC said, “The WRS plays a vital role in stabilising commodity prices and enhancing financial access for farmers by offering improved storage facilities.”

The system, Ahad added, enables farmers to secure fair prices for their commodities and increases the availability of loans. IFC is committed to strengthening the policies and procedures surrounding WRS, recognizing that private sector participation and investment are essential to fully realise its benefits for farmers and Kenya’s economic growth and food security.”

The rice value chain in Kisumu faces hurdles such as erratic weather conditions, high input costs, pests and diseases, insufficient storage facilities, price fluctuations, and poor marketing systems.

To address these challenges, the Kisumu County Integrated Development Plan (CIDP) 2023-2027 prioritises the enhancement of extension services and the technical capacity of staff well-versed in modern agricultural knowledge and skills, among other interventions.