Inclusive Access: 3.5M Kenyans Granted Guarantor-Free, Affordable Loans; Step-by-Step Application Guide
Moses Kuria, Cabinet Secretary for Trade and Investments, announced cheaper loans and storage spaces for cereal traders and farmers on Tuesday, June 13.
In a notice distributed by the Warehouse Receipt System Council (WRSC), the ministry urged all Kenyans to utilize the government-provided warehouses to prevent post-harvest losses.
According to the council, those who utilized the storage facilities would be eligible for inexpensive business loans, with the ministry using the stored goods as collateral.
By the arrangement, the ministry issues a receipt to a trader that details the quantity and quality of the stored grain, as well as the dimensions of the acquired warehouse.
“Using their stored crops as collateral, they can obtain loans to invest in their agricultural enterprises, fostering growth and financial independence.
“Not only does it streamline the storage and distribution of agricultural commodities, but it also holds immense potential for empowering women and youth in these sectors,” the statement stated in part.
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The Ministry of Agriculture reports that more than 3.5 million registered farmers have access to affordable loans.
Storage Reasons at the Facilities
According to the council, the system was implemented so that farmers could earn more money from their produce by securely storing it while they negotiated the best prices or waited for favorable conditions.
In addition, it safeguards farmers against post-harvest losses, particularly during bumper harvests when farmers lack storage facilities.
In addition, the stores shield farmers from middlemen who take advantage of the lack of storage facilities to purchase grains at a discount.
Qualifications Required of Warehouse Managers
The Ministry also requested applications from individuals interested in becoming warehouse operators, provided they met the following requirements:
1. They were able to provide a certificate of Compliance from the Food Directorate, obtained after the warehouse is inspected.
2. The applicant was a legal entity registered in Kenya.
3. The applicant had a viable business plan.
4. Provided a valid insurance cover against all risks for commodities stored.
5. Demonstrated the ability to raise adequate capital to finance initial investment and three years of operational costs.
The council directed interested persons to submit applications in written form or hard copies or submit a soft copy to info@wrsc.go.ke.
Inclusive Access: 3.5M Kenyans Granted Guarantor-Free, Affordable Loans; Step-by-Step Application Guide
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