Warehouse Receipt Financing in Kenya: Cautiously Optimistic

Warehouse receipt financing has long been seen as an important agricultural financing instrument, but in Kenya it has failed to live up to its promise. This is not for a lack of trying. Part of the problem was that there were few credible warehouses. Poor management and facilities have led to commodities rotting in warehouses or being released before loans were paid back. As a result, commodities in warehouses used as collateral could not be recovered by lenders.