In an effort to ease financial pressure on farmers across Kenya and to promote renewed investment in the key sector of the economy, President Uhuru Kenyatta has waived up to Kshs1.5 billion in loans owed by Kenyan farmers to the Agricultural Finance Corporation (AFC).
The loans were taken to support wheat, sorghum and livestock farming in Kajiao, Narok and Baringo Counties.
Due to unfavourable weather conditions that resulted in farm losses, the farmers were unable to repay the loans with AFC continuing to retain their land title deeds as collateral.
In recent months loans amounting to Ksh475 million owed to the Government by Meru Dairy Union dairy farmers and Kshs25 million owed to the AFC by Bunyala Fishermen Cooperative Society have been waived; Treasury advised to advance Mumias, Chemilil and Nzoia sugar factories Kshs 1 billion to pay farmers arrears; and payment of wage arrears dating back 10 years to 25, 000 Agricultural Development Corporation (ADC) workers amounting to Kshs250 million facilitated to bolster agriculture in Kenya.
Kenyatta has directed the National Treasury to work with the AFC to ensure the deeds are handed back to the farmers affected by the AFC distress.