Due to lack of finance and accurate price information as well as low quality farming inputs, most small farmers are excluded from the grain value chain.
Due to lack of finance and accurate price information as well as low quality farming inputs, most small farmers are excluded from the grain value chain. In order to transform smallholder farmers into commercial producers, storage and financial facilities have to be accessible to them. The key to both facilities is the warehouse receipts system (WRS). The banks are hesitant towards supporting smallholder farmers to obtain personalized services due to their low income, poor technology, lack of assured market and lack of price information. In order to improve the chain sustainability and inclusiveness, the East African Grain Council (EAGC) in collaboration with its partners has supported more than 25,000 farmers in Kenya to access financing and increase investment in the sector over the last three years. Recently, the EAGC signed contract with Unaitas SACCO (financial institution ) and Ngarua cereal producers. Over 12 warehouses have been certified across the country and are issuing receipts that are used as trading instruments. Nevertheless, 10 warehouses have been lined up for certification in the next round of inspection. In addition approximately 50,000MT of commodities has been deposited through the EAGC WRS including maize and wheat. Predominantly the WRS simplifies trade transaction by offering timely market prices, render information on standardize grades and quality parameters and safeguarding the grain stocks.