East Africa Exchange Company had signed an MoU with ABC Bank and East Africa Farmers Federation to build a warehouse in Uasin Gishu County.
Company Chairperson Jendayi Frazer said the facility will help reduce post harvest losses.
"The MoU signed will enable farmers store their grains at a subsidised rate until there is good market prices for them to sell their produce," she said.
Speaking during a stakeholders' forum, Dr Frazer said the facility will provide collateral services that will reduce drying and storage expenses.
"Our intention is to make sure farmers benefit from their sweat, the warehouse will accommodate 40,000 metric tones of grains," she said.
She said the facility will be ready for use at the end of the year.
"We will also do value addition which will include grading, drying and standardisation of grains," she added.