Trade ministry in its bid to establishing agricultural commodities exchange has announced that there will be an update of all state-owned warehouses at a tune of Sh100 million.
Kenya National Trading Corporation (KNTC) which owns 514,685 square feet of godowns in all major towns is among the earmarked warehouses for renovations. The cities include Kisumu, Naivasha, Mombasa, and Nairobi.
The update will see small and medium-sized enterprises (SMEs) make supplies to agro-processers through the use of a receipt system.
Trade and Investments Secretary Peter Munya also stated that the warehouses would also be used in the storage of construction materials for the planned 500,000 housing program.
Previously, the small-scale farmers have been contrary on East Africa Grain Council and the National Cereals and Produce Boards’ receipt system with claims of unclear operating standards.
“We want to invest in an e-commerce platform to help SMEs access markets, and this will require aggregation of supplies. We want to also support affordable housing by providing warehousing to materials sourced from the SMEs” said Mr. Munya.
Agricultural commodity suppliers like rice, tea, cotton, and staple maize are among the farmers who are set to be issued with receipts to be able to have proof of quality and quantity supplied.
“We are looking at what the warehouses require because commodities exchange will certify warehouses so that international standards are met when storing produce,” acting managing director Joel Imitira said.