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94% of smallholder farmers in the country prefer to store their own produce, as opposed to availing them for storage using the warehouse receipt system. This is one of the key findings from a feasibility study on warehouse receipt financing, facilitated by FSD Kenya, in collaboration with other partners. The report shows the disinterest by farmers is due to the perceived flexibility that comes with independent storage, the cost of warehousing, unfamiliarity with the warehousing system and logistical challenges.
Farmers cite red tape with warehouse receipt system
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