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Plans on to write off AFC loans

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by MaxShimba, Sep 14, 2009.

  1. MaxShimba

    MaxShimba JF-Expert Member

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    Plans on to write off AFC loans

    By NOAH CHEPLOENPosted Sunday, September 13 2009 at 19:22


    The Kenyan Government has promised to write off loans owed to the Agricultural Finance Corporation (AFC) by farmers who are unable to repay because of the prolonged drought.

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    Agriculture minister, William Ruto, said on Saturday that he would table a Cabinet paper in Parliament soon for approval, adding that the government was keen to address their plight.


    The minister was talking in reference to small-scale farmers who may have borrowed loans from the State corporation to buy seeds for planting or to boost their agricultural output but may not be able to repay due to failed crops, arising from the dry weather conditions.


    “We know that our farmers worked hard this season but were let down by the poor rains. Some of you took loans from AFC but your crops failed and livestock died,” he said.


    However, Mr Ruto pointed out that only those who clearly demonstrate their inability to repay the loans will be assisted to ensure that the government’s goodwill is not abused by unscrupulous individuals.

    He said the ministry was also looking into ways of removing the interest accrued from such loans, to encourage farmers to repay the loans comfortably.


    The minister added that the government will continue looking for ways to tackle the changing climatic conditions, through increasing use of irrigation to ensure the food crisis facing the country is addressed once and for all.


    Mr Ruto, who was speaking during a funds drive in Eldama Ravine constituency, said the government has already allocated funds to the Perkera Irrigation Scheme in Baringo District to boost production capacity.


    He promised farmers that the price of seeds and fertiliser will be reduced to make them affordable and help increase crop production in the next planting season. “It is my responsibility to make sure that your interests are addressed,” he said.


    Mr Ruto revealed that his ministry had set aside 5 million seedlings to be planted across the country on the onset of the El Nino rains this year. He added that everyone should take part in tree planting to ensure that forest cover in the country is recovered.


    “Let us put our energies in this venture and ensure that we reach the 10 per cent of the forest cover,” he added.

    http://www.nation.co.ke/business/news/-/1006/657548/-/igf5p6z/-/index.html
     
  2. MaxShimba

    MaxShimba JF-Expert Member

    #2
    Sep 14, 2009
    Joined: Apr 11, 2008
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    What a move!
     
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