KFA on path to recovery after clearing Sh1billion debt says MD Simon Cherogony

KFA MD Simon Cherogony. [PHOTO: STANDARD]

NAKURU COUNTY: Kenya Farmers Association (KFA) is back on its feet after clearing most of its debts amounting to over Sh1billion owed to creditors that had accumulated over the years.

The Managing Director Mr Simon Cherogony admitted that the debts owed to two commercial banks, state agencies, workers and suppliers had crippled the organization.

Cherogony, who took over in 2006, said KFA plunged into debts in the early 1990s over poor management and the current board has been working to revive the organization that is key in supplying farmers with farm inputs.

Cherogony said the organization has cleared over Sh700million owed to the National Bank of Kenya and part of the Sh400million owed to other creditors including the Barclays Bank.

He said KFA has managed to settle the payments after selling some non-core assets, which the board of directors headed by Mr Richard Mibei had identified for disposal.

“We came up with a plan on how to settle the debts and together with the debenture holders banks’ identified non-core assets that would have been sold at a throw price to recover the debts,” he said.

Cherogony said they have also paid workers’ outstanding dues, part of NSSF deductions, Government taxes and rates owed to various county governments.

The KFA's 33 branches that are spread across the country are fully operational and it now has a workforce of 252.

“All our outlets are manned by qualified staff who advise farmers on the best prices for seeds, pesticides and other products and how to use them in their farms,” said the MD.

He said KFA was still viable because it has branches spread across the country and their proximity to farmer is an added advantage.

“Farmers can greatly benefit from KFA not only because of our proximity to them but because we stock quality products and offer advice to the farmers who come to our outlets for seeds, pesticides, fertilizers and other farm equipment,” said Cherogony.

The MD said they are now moving to the next phase of the revival plans, which will involve the relooking at the legal status of the organization, updating members register and holding an Annual General Meeting (AGM).

The changes that the organization had gone through in the 1980s had affected its membership and legal status.

Due to the changes of names from KFA to KGGCU and back to KFA again, the membership and legal status of the KFA changed drastically.

“A consulting firm has been hired to carry out an audit, work on the legal status and advise the management on the process to the AGM,” said Cherogony.