A farmer service and supply chain company in Kenya has received a certification for one of its warehouses, the first to be issued to a private firm.
AFEX Fair Trade has been licensed as the first Private Warehouse Receipt Operator in Kenya.
The certification was done by the Warehouse Receipt System Council (WRSC) at the Soy Mateeny warehouse in Uasin Gishu County.
A warehouse receipt is a type of documentation used in the futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility.
“We look forward to a time when every AFEX warehouse is certified and licensed as a warehouse receipt operator,” the company’s Managing Director Tabitha Njuguna said.
With 17 warehouses spread across two counties in Kenya, AFEX has registered over 11,000 farmers and traded over 11,000 metric tonnes of maize.
WRSC chief executive officer Samwel Ogola congratulated the AFEX Fair Trade Kenya saying the “certification opens the space for private investment and participation in the Warehouse Receipt System in Kenya.”
Launched in July 2020 by Kenya’s Ministry of Agriculture, the Warehouse Receipt System (WRS) allows farmers to hold their products in certified warehouses.
At the warehouse, the product can be tested, cleaned, graded, and then stored, with the owners of the commodity receiving a receipt as proof of ownership.
This provides the farmers with the option to sell their produce when prices are favourable, while also serving the purpose of reducing post-harvest losses in the country.
AFEX Fair Trade Kenya targets to transact with 100,000 farmers, and trade over 500,000 metric tonnes of commodities by 2025.
“In achieving these goals, the company will support Kenya’s food security while promoting a fair exchange of value among players in agricultural value chains,” the company said in a statement.
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