AFC to review interest on loans to farmers

The Agricultural Finance Corporation (AFC) will review interest on loans advanced to farmers who were victims of the post-election violence in Rift Valley.

Acting managing director Zachary Magara, however, told the Nation that the corporation will not waive the loans or interest en mass but will deal with each case as petitioned by individual farmers.

“We intend to address the matter case by case depending on how much the farmers had been loaned by AFC and the loss incurred,” said Mr Magara.

He said the corporation would also review loans advanced to sugarcane farmers but whose plantations were destroyed during the mayhem.

This comes after hundreds of growers in Timboroa in North Rift Valley said they were unable to service their loans and appealed for a waiver of interest.

Most said they had secured loans ranging from Sh100,000 to Sh500,000 from AFC but since the violence broke out, they have been unable to service them.

At least 650,000 people were displaced during the post-election violence that left 1,133 people dead, mostly in North Rift Valley.

On Wednesday, Mr Magara said AFC was focused on offering farmers affordable loans but warned that the appraisal of the loans will be strict.

“In the past, loans were not properly appraised but this time round we have streamlined our loaning system because we want farmers to succeed in all their activities and other related farming projects,” he said.

Mr Magara said AFC had signed a performance contract with the government and urged farmers to support it by repaying loans in good time.

“We will strive to make sure farmers reap the fruit of this performance contract by providing them with first class services provided they don’t let us down by defaulting on their loans unless there is a natural calamity like drought,” he said.

The official said the corporation has started rolling out seasonal credit facilities to farmers ahead of the planting season.

Some of the farmers in Narok, Molo, Nakuru, Nyahururu and Nayuki are already enjoying the facility.