Kenya launches Electronic Warehouse Receipt System to prop up farmer financing, industrial growth

Kenya launches Electronic Warehouse Receipt System to prop up farmer financing, industrial growth

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Kenya has officially launched Electronic Warehouse Receipt System (eWRS) central registry platform modernise agricultural trade, improve access to finance and strengthen structured commodity markets.

The digital platform is expected to enable farmers and traders to deposit produce in certified warehouses and receive secure electronic receipts that can be used as collateral for loans or traded within formal markets.

Speaking during the launch at a Nairobi hotel, Department for Industry Principal Secretary Juma Mukhwana described the system as a long-awaited milestone in Kenya’s agricultural and industrial transformation journey.

“For me, this is personal fulfilment because conversations around warehouse receipt financing began decades ago. Today we are launching a secure digital platform that strengthens transparency, traceability and trust across the agricultural value chain,” Dr Mukhwana said.

The principal secretary noted that agriculture remains the backbone of the economy but continues to face persistent challenges including post-harvest losses, price volatility and limited access to affordable credit.

“These receipts convert agricultural produce into bankable assets. Farmers can access finance without distress selling and sell when market conditions are favourable,” he explained.

Dr Mukhwana emphasised that market certainty and profitability are critical to transforming farming into a viable business, urging financial institutions to actively support and scale up financing tied to warehouse receipts.

“If we are talking about five million farmers, we must develop a strategy to bring at least one million into this system within a short period,” the principal secretary observed.

In addition, he linked the initiative to the country’s industrialisation agenda, noting that structured commodity systems would help manufacturers source raw materials more predictably and reduce production costs.

Chairman of the Warehouse Receipt System Council Patrick Mukundi Mbogo said the central registry operationalises the digital backbone of the warehouse receipt framework.

“This platform provides a secure system for registration, management and tracking of electronic warehouse receipt transactions. By digitising these systems, we are enhancing transparency and strengthening confidence among market participants,” Mbogo explained.

He revealed that the system is already operational, with 114 warehouse receipts issued covering over 11,755 bags of commodities, 44 of which have been financed.

Deputy High Commissioner and Development Director at the British High Commission Diana Dalton congratulated the council and acknowledged support from TradeMark Africa and other partners.

“This milestone reflects sustained effort, institutional leadership and a shared commitment to modernising Kenya’s agricultural markets,” Dalton pointed out.

She noted that total trade between Kenya and the United Kingdom exceeds £2 billion annually, with exports benefiting from duty-free and quota-free access under the Kenya-UK Economic Partnership Agreement.

“Market access alone does not guarantee competitiveness. For trade to expand sustainably, strong domestic systems must underpin it,” she observed. She said digitising warehouse receipts improves integrity by making stored produce verifiable in real time and documentation transparent.

“When producers can store their harvest securely, verify its quality and access finance without distress selling, they gain greater control over their economic choices,” Dalton explained.

According to Chief Executive Officer (CEO) of Agribora Kenya Limited Kizito Odhiambo, the electronic system would significantly reduce the time farmers take to access certification and financing.

“We are expecting that within 24 hours a farmer should be able to get a warehouse receipt. By linking our systems with banks, financing can also be processed within the same 24 hours,” Odhiambo said.

He, however, cautioned that rebuilding farmer confidence remains critical for scaling the system.

“Farmers have been cheated before. They are waiting to see success. It is a collective responsibility for all of us banks, warehouse operators, investors and regulators to rebuild trust and make this innovation work,” he rallied.

Meanwhile, the launch of the Electronic Warehouse Receipt System Central Registry Platform signals a new phase in Kenya’s agricultural reform agenda, aimed at strengthening structured commodity trade, enhancing access to credit and supporting the country’s broader economic transformation.

A Tell Media / KNA report / By Michael Omondi

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