Kenya is calling for harmonisation of commodity standards, trade regulations and warehouse receipt systems across African markets to eliminate barriers to cross-border trade, improve agricultural financing and strengthen regional food security.
The government says fragmented regulatory frameworks and differences in quality standards across countries are undermining efforts to build integrated commodity markets, limiting the movement of agricultural produce and constraining farmers' access to financing.
Principal Secretary for Trade, Regina Ombam, said closer cooperation among governments, regulators and private-sector players was necessary to improve market access and facilitate the movement of goods across regional trade corridors.
Speaking during the Regional Structured Trading Systems Policy, Market Integration, Peer Learning and Exchange Forum, Ombam said aligning national frameworks would build confidence in commodity transactions and enable warehouse receipts to support trade and financing across borders.
“Differences in standards, regulations and warehouse receipt systems can constrain cross-border commodity trade. Harmonising these frameworks will build trust, improve commodity quality assurance and enable warehouse receipts to support trade and access to finance across regional markets,” she said.
The forum brought together stakeholders from Kenya, Uganda, Tanzania, Namibia, Zambia and Rwanda to explore ways of strengthening structured commodity trading, expanding financing opportunities and improving regional market integration.
The push comes as African countries seek to deepen economic integration under the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA).
However, differences in national regulations, commodity grading requirements and trading systems can increase transaction costs and complicate cross-border trade, even where regional agreements provide for the movement of goods.
Ombam said Kenya remained committed to reducing trade barriers and implementing policies that expand market access, calling for practical measures to align regulatory frameworks and improve information sharing among regional market participants.
Warehouse receipts key to unlocking financing
At the centre of the proposed reforms is the warehouse receipt system, which allows farmers and traders to store commodities in certified facilities and use receipts representing the stored produce as collateral to secure financing.
The system can help agricultural producers avoid selling immediately after harvest, when prices may be depressed by seasonal supply pressures, while giving them an opportunity to access working capital for subsequent production and trading activities.
It also provides a framework for improving commodity grading, storage and quality assurance, potentially reducing post-harvest losses and strengthening confidence among buyers, lenders and processors.
Warehouse receipts could also facilitate trade across borders if participating countries recognise compatible standards and verification procedures, allowing commodities stored in approved facilities to be more readily financed and traded across regional markets.
Patrick Mbogo, chairman of the Warehouse Receipt System Council (WRSC), said Kenya had made progress in building the institutional and digital infrastructure needed to expand the system.
A major milestone was the launch of the electronic Warehouse Receipt System Central Registry on February 25, 2026.
The registry is intended to improve the management and verification of warehouse receipts, increase transparency in commodity transactions and strengthen confidence among financial institutions and other market participants.
The council also launched its strategic plan and a Warehouse Receipt Financing Manual in 2025 to guide the expansion of commodity-backed financing.
An operations manual for warehouse operators has further been developed to improve consistency, accountability and compliance in warehouse management.
“These milestones demonstrate progress, but our priority must be to translate them into tangible benefits for farmers, cooperatives, traders, processors and financial institutions,” Mbogo said.
Legal reforms target cross-border trade
Kenya is also pursuing legislative changes to strengthen the warehouse receipt system and support regional commodity transactions.
Mbogo said the Warehouse Receipt System Amendment Bill, 2026, had received Cabinet approval and was proceeding to Parliament for consideration.
The proposed amendments seek to facilitate arrangements under which commodities from across borders can be deposited in certified warehouses in Kenya, potentially widening access to storage infrastructure and commodity-backed financing.
If implemented alongside compatible regional regulations, the changes could strengthen Kenya's position as a hub for structured agricultural trading and commodity financing.
However, the effectiveness of such reforms will depend on the adoption of compatible rules across participating countries, reliable verification systems and greater participation by banks, traders, warehouse operators and commodity exchanges.
The council said regional integration would require stronger commodity standards, expanded certified storage capacity and closer connections between warehouses, financial institutions and buyers.
Digital interoperability between national systems will also be important in enabling market participants to verify receipts and conduct transactions with confidence across jurisdictions.
