Agriculture CS says coffee farmers will have access to a loan of 2.7 billion shillings
Chuka, Kenya May 13 – Agriculture Cabinet Secretary Peter Munya has said 2.7 billion shillings are available for coffee farmers to increase production.
The money will be loaned to coffee growers with three percent repayment interest and will be accessible through the coffee cooperative societies.
Speaking to a group of farmers during an outreach exercise in Maara sub-county, Munya revealed that 177.8 million shillings have already benefited about 15,703 farmers in the country.
He noted, however, that the number of participants in the loan at Tharaka Nithi was relatively low, with only 280,300 shillings having been granted to 14 farmers.
“Other counties like Meru, Kirinyaga and Murang’a have benefited from borrowing money compared to Tharaka Nithi where the number of farmers borrowing money is very low,” he said.
Munya explained that to access the loan in advance, farmers had to take their coffee to the factories to be weighed in kilos which would then be used as collateral when borrowing the money.
“All you need is for your company to put in your signature that the money lent will be deducted from the coffee sold,” he explained, adding that this would help ensure farmers repay the money. .
He added that farmers would still have access to the loans whether they sell their coffee through the New Kenya Planters Cooperative Union (New KPCU) or other channels.
“You don’t need to sell only to New KPCU to get the loans. You can sell anywhere and as long as you register with your companies you will get the money,” he said.
In addition, Munya informed that coffee farmers would continue to benefit from subsidized prices for fertilizers which they could access through the National Cereals and Produce Board.
Farmers can now pay 60% for fertilizer, he noted, adding that the government would pay the remaining 40%.
He also revealed that the president has used 1 billion shillings to help farmers buy fertilizers and other facilities needed for farming.
So far, 80,087 farmers have registered for the subsidized fertilizer and 59,000 have already benefited from 18 counties nationwide.
In Tharaka Nithi, 5,753 farmers registered and 1,049 benefited, summing the total expenditure in the county to 3.4 million shillings.
He urged farmers to take advantage of the two opportunities offered by the government to double their coffee production.
He explained that the new KPCU is now a state corporation under the State Department for Cooperatives of the Ministry of Agriculture, which allows the government to take over the manufacture and sale of coffee on behalf of farmers. , giving them subsidized fertilizer as well as advancing Cherry Loan.