10 January 2014

Kenya: Chase Bank to Accept Cereals As Collateral

Farmers and traders will be able to access short term loans in the form of warehouse receipt finance, in a bid to improve efficiency in the supply chain of farm products, Chase Bank has said.

The bank said that farmers and traders of wheat, maize, barley and sorghum will be able to secure the loans, after delivering and storing their grain in warehouses accredited by the East African Grain Council.

"Farmers and traders of grain produce can now store their commodities in warehouses approved by EAGC and use the warehouse receipts as collateral to obtain an upfront 65 percent financing from the bank," Chase Bank Head of Agri-business, Kathleen Goense said.

She added that the loan will enable farmers and traders to meet their immediate financial needs without reliance on selling their produce after harvest, so as to enable them to store and sell the produce later when the market prices are high.

Agriculture is a significant contributor to the Gross Domestic Product at 24 per cent and the warehouse receipts would be an excellent instrument in financing it, if the Warehouse Bill is put into law, Chase Bank said.

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.