The Strategic Food Reserve (SFR) is planning to introduce Warehousing Receipt System in a move aimed at curbing middlemen who exploit farmers by buying maize through at a throwaway price.
According to SFR board chairman Noah Wekesa, with the system in place, farmers can deliver their maize in an institution such as Kenya Farmers' Association (KFA) where it will be stored but at the same time be able to access funds using a warehouse receipt.
"The system is happening in South Africa in that the price is not a government issue since it is set by the commodity by looking around the continent or region to see what the price is. If we were to go to that direction, we would use institutions such as Kenya Farmers Association (KFA) to help farmers,” said Wekesa who spoke to the press in Eldoret town on Tuesday after meeting farmers to discuss on the maize buying price this harvesting season.
“Warehousing receipt replaces players in the maize chain since the maize price is international and nobody can cheat. As soon as the farmer has taken his maize to a warehouse he receives his money,” he added.
Wekesa further revealed that SFR will be buying 4 million 90 kilogram bags of maize from farmers this season.
He also said that they are working with the Ministry of Agriculture to ensure the price of maize is stabilized so that even if the farmer sells maize either to the government or millers, they get the same price.