Sep 21, 2021

Mawazo Writing Africa

Writing about the main

Farmers plead for waivers as auctioneers come calling

He is now in default as he should repay the loan in three years.

AFC has now issued a warning that his piece of land in the town of Nyeri that he used as collateral will be auctioned to clear the arrears.

Time, “said Karubiu.

He added that other companies that supplemented his revenue have also suffered badly.

” We pray that the government through the Department of Agriculture will offer a moratorium so that we can get ourselves back financially and repay the loans, ”he said.

Mr. Patrick Dennis Mwaura, in turn, borrowed Sh 3 million farm in Nyeri County.

After providing the necessary information and proof of ability to repay the loan, he received the money and started the e project. He was supposed to repay Shr 100,000 a month.

“Things didn’t go as expected because as soon as I started the project, Covid-19 struck and stopped business and payments,” he said.

In an April letter, the finance company informed Mr. Mwaura of its intention to sell his property in order to reclaim the money he owed them.

“The account is in arrears for a total of.. The loan is due and we are asking you to pay 2.6 million Shillings, for which interest will continue to accrue if you do not remedy the delay in payment “, read the letter.

Debit

< p> The plight of the two Nyeri farmers mirrors that of many others who have been bogged down by agribusiness loans.

Farmers who borrowed money to develop and mechanize agricultural activities are now advocating a government waiver citing difficult economic times.

Additionally, the weather uncertainties in most parts of the country have left farmers suffering enormous losses and therefore unable to repay the loans within the set deadlines.

The majority of farmers turned turned to AFC after the weakening of the Kenyan Shilling against major world currencies led to a sharp rise in commercial bank lending rates.

Mr Mwaura argues that while the government is taking on the aftermath of Covid-19 in other sectors but agriculture has been neglected.

“There are many reasons why I have not been able to repay my loan. For example, we have a drought that has so affected my milk project that production has declined, “he said, calling on Cabinet Secretary Peter Munya to intervene.

Grace period

AFC has Mr Mwaura was given a three-month grace period to settle the arrears or to lose his land.

“The property will be sold through a public auction and any partial or installment payments made will be without prejudice. … the sale of the property will continue unless the entire arrears amount is received in full along with the accrued interest, “the letter reads.

Alternatively, Mr Karubiu, who is supposed to repay Sh200 , 000 a month, asked AFC to give them a friendlier repayment plan of seven months instead of the current three months.

“We should be supported in the same way the government has supported other sectors,” he added / p>

AFC Chairman Franklin Bett admitted that farmers struggled to repay their loans due to the Covid-19 pandemic and high taxation and the whims of climate change.

Mr Bett says , The company will drive loan repayments to give enough money to help other farmers and contribute to the country’s food security – one of President Uhuru Kenyattas’ agenda items for the Big Four by getting more farmers involved Access to credit for the agribusiness will be helped.

“It’s going on a broad front, but the loans have to be paid back as we give farmers ample time to repay the money within the terms of the loan agreement,” he said.

However, he said the government would not give up the loans for the defaulting people as it would “make farmers feel bad about repaying their loans on time”.

“People have to be disciplined. Borrowed and used money must be repaid. I would like to encourage the government not to follow the waiver path, ”he said, adding that most farmers mismanage their money or invest it outside of the purpose of the loan.

[emailprotected ]