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"id": 706279,
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"speaker_name": "Sen. Ndiema",
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"legal_name": "Henry Tiole Ndiema",
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"content": "Thank you, Mr. Temporary Speaker, Sir. I still have time. There are so many people, say, the brokers, the millers handling the storage and transportation. The products end up being very expensive. This system will ensure that the issue of brokers will be minimized, the farmer will deliver their grain to the store and even handling the product will be hustle-free. We know of cases where maize has been transported all the way to the NCPB stores in Nairobi and when there is hunger or lack of food in Turkana, it is again transported through Kitale again all the way to Turkana because of lack of logistics. If this system was there, the firm, whether private or public, would establish a warehouse in Turkana. Whenever there is food shortage, whether it is the national or the county government which wants to procure for the people, they will do it there. This system will also be open to the private sector. Therefore, the Government will also be relieved of the burden of running stores all over the country. In fact, the National Cereals and Produce Board (NCPB) might consider leasing out its stores to warehousing companies. Even keeping grain for emergency by the Government may not be necessary. All the Government needs is to keep some funds for contingency purposes and then when there is shortage, it is procured from the local warehouses instead of storing it at NCPB. The NCPB has ended up keeping it for about six to eight years because they are not sure. At the end of the day, it is declared unfit for human consumption. This would obviate that problem. The Warehouse Receipt System is very opportune. Some countries in the region have already established it. Rwanda has such a system and they are not in the state where we have been. Tanzania has started it. We should not be left behind. The issue of lack of storage for farmers has made them so desperate that they would want to offload their produce to where it promises a good price. Even brokers and fraudsters have come to counties like Trans-Nzoia, where they promise to give a good price, take the maize and say they will pay in a week, then a week becomes a month. At the end of the day, one cannot trace those people and can only imagine their faces. Many farmers have lost through fraudsters. However, with this system now in place, the people who hold warehouses will be vetted. They will be known by name and company. There will be some form of insurance to ensure that if there is any loss, at least somebody will be held responsible. Even the Government can be held responsible because they are the ones licensing the warehouses If a warehouse cons farmers, the Government, in a way should compensate because it is known and there is a record. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}