AFC unveils concession deal in place of full loan waiver

By KIPCHUMBA KEMEI

Agricultural Finance Corporation will not waive the debts farmers in the country owe it. Speaking in Narok, the firm’s Managing Director, Lucas Meso, said farmers owe the corporation billions of shillings, which if waived would mean the parastatal would have to close shop.

"Although the Treasury does not gives us that kind of money, the demand for loans in the country is over Sh10 billion. It is impossible to waive loans when the allocation is not commensurate to the demand," he said.

Addressing the region’s farmers, meso said AFC would ease farmers’ loan burden through giving interests concessions instead giving the waiver.

Meso said the new initiative would lessen the burden of accumulated interests, adding that individual farmer will be able to negotiate with the corporation on the time lines they need to lessen the interests they owe.

He urged farmers to regularise their accounts within three months if they want to enjoy the concession, adding that the new initiative is a Government plan to boost the agriculture sector and lessen the hardships farmers undergo in food production.

Depending on the amount borrowed, a farmer who owes AFC Sh100,000 in accrued interest will be required to pay Sh80,000 with the Government waiving the remaining Sh20, 000.

"The Government realised that waiver is not sustainable and that is why it has adopted the new arrangement, which will ensure farmers stay in farming business.

"Farmers who default in lessening the interests their loans will have accrued within the stipulated three months will be forced to pay the interest in full," said Meso.