Reprieve for farmers as President Uhuru Kenyatta cancels Sh2.4b debts

Coffee farmers in Mt Kenya region received a major boost yesterday after the Government waived Sh2.4 billion debts.

President Uhuru Kenyatta and his Deputy William Ruto delivered the good news to farmers in Kirinyaga and directed them to collect title deeds and other collateral that they had given to lenders to secure the loans. 

Announcing a raft of measures meant to see the once lucrative sector back to profitability, Kenyatta said with a clean slate the farmers would be able to enjoy the fruits of their labour.

The waiver is part of the Government's efforts to breath life back to the coffee sector that started in February this year, when Uhuru appointed a task force to look into the sector.

The team recommended far reaching changes to assist coffee farmers, among them that the Government pumps in Sh7 billion into the sector.

The task force also recommended that Sh1.2 billion is required for the coffee sub-sector subsidy programme, which involves provision of farm inputs like fertiliser.

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The rice sector also got some relief after the President announced that the Government had already released Sh240 million to compensate the final group of farmers to pave way for the construction of Sh12 billion Thiba dam.

The dam, one of the Vision 2030 flagship projects, is nearly two years behind schedule following intrigues over compensation.

It was supposed to be commissioned by Japanese Prime Minister Shinzo Abe when he visited the country in August, but the compensation process had not been completed

The President appeared to be on a charm offensive as he announced a string of development projects targeting the agriculturally rich area.

Yesterday morning, he launched the tarmacking of Kutus-Kiamutugu-Githure-Kibungu road and commissioned medical equipment at Kerugoya hospital.

In the afternoon, the President and his deputy were in Murang'a where they commissioned the construction of Kangema-Gacharage road before launching rehabilitation of Mukuyu-Kambiria-Gakira and Gakonya-Mahuaini road. Uhuru cautioned road contractors against abandoning projects.