NAIROBI, April 4 (Xinhua) -- The World Bank's private sector lending arm, the International Finance Corporation (IFC), and Kenya on Tuesday signed an agreement to boost farmers' incomes.
Amena Arif, IFC country manager for East Africa and Malawi, told journalists in Nairobi, Kenya's capital, that her organization will provide technical support aimed at bolstering the adoption and uptake of the Warehouse Receipt System in Kenya.
"By enhancing the policies and procedures around Kenya's Warehouse Receipt System, IFC hopes to grant farmers better storage facilities, enable them to fetch fair prices for their commodities," Arif said.
She noted that the deal will enhance access to certified safe and quality storage facilities under licensed professional warehouse operators who charge affordable storage fees.
Alfred K'Ombudo, principal secretary in the State Department of Trade, said farmers and aggregators across the country will be able to deposit their agricultural commodities in certified warehouses, in exchange for a Warehouse Receipt which can be traded, sold, exchanged, or used as collateral to obtain bank loans.
He revealed that the deal will also strengthen the legal, regulatory, and operational framework of Kenya's warehouse system with the aim of boosting warehouse receipt financing and increasing private sector participation and investments in the system.
