Kenyan Government To Spend USD 100 K On Upgrading Warehouses For Farmers, SMEs

By  |  February 12, 2019

The Kenyan Government is set to upgrade all state-owned warehouses at a cost of USD 100 K.

The Ministry of Trade and Investments through its Cabinet Secretary Peter Munya has made the announcement revealing that the government is keen on investing in an e-commerce platform to help SMEs access markets.

In a report by Business Daily, the CS revealed the rollout is set to begin from July. He further disclosed that move is a firm directive from President Uhuru Kenyatta who is keen on intensifying efforts to establish an agricultural commodities exchange.

The CS reiterated that the move would facilitate the establishment of a systematic warehouse receipt system that small and medium-sized enterprises (SMEs) can use to supply produce to agro-processors which conforms with the food security pillar of the Big Four agenda.

Munya revealed that the government wants to support affordable housing by providing warehousing to materials sourced from the SMEs. The godowns will also store construction materials for a planned affordable housing program.

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A Warehousing Receipt System (WRS) Bill 2018 will provide legal backing for the operation of the system. The warehouse receipt will reflect the quantity and quality of the deposited commodity, the management of the transfer of the receipts as a document of title. It will include the regulation of warehouses and actors associated with the processes.

All warehouses earmarked for refurbishment are under Kenya National Trading Corporation (KNTC).

Joel Imitira, the acting director of KNTC stated that “We are looking at what the warehouses require because commodities exchange will certify warehouses so that international standards are met when storing produce.”



Featured Image Courtesy: Dutchwatersector

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