President William Ruto addresses the residents and traders of Kirinyaga Central Constituency at Kagumo Town on August 10, 2024....CLICK HERE TO READ THE FULL ARTICLE>>>
President William Ruto has warned Coffee Co-operatives against procuring high-interest loans from financial institutions that leave farmers in huge debts.
The President said the government is providing cheap loans to coffee farmers through the coffee cherry fund and wondered why coffee co-operatives turn to banks.
The Coffee Cherry fund charges an interest of three per cent while some financial institutions charge up to 25 per cent.
The President said as his administration works to waive debts incurred by coffee farmers, it will not allow co-operatives to continue with the cycle of debts.
The government has allocated Sh2 billion to waive debts incurred by coffee co-operative farmers and which eat into farmers’ earnings.
“We have agreed with my deputy that once we waive the debts, we don’t want the co-operatives to take us back into the hole. Some people in those co-operatives are not straightforward,” he said.
The President said there is no need for co-operatives to continue taking expensive loans while disregarding cheap credit offered by the government.
“Let them go for the government funds. Can’t they see the difference between three per cent and 25 per cent interest rate?” he wondered.
A coffee tree in Mathioya, Murang’a County.
The President said this while addressing Kagumo residents in Kirinyaga county shortly after commissioningKirinyaga Central Technical and Vocational College on Saturday.
He instructed Technical and Vocation Education and Training (TVETS) Esther Mworia to import Sh60 million worth of equipment from China for the college.
He, however, expressed concerns that the institution with the capacity to enrol 1,500 students only has 150 learners currently.
Ruto said plans have been put in place to ensure learners enrolling in the college access bursaries, scholarships and loans, and that local youths have no excuse not to join it.
“The youths we’re looking for to work in affordable housing projects, Exports Processing Zones, digital jobs and export of labour have to be skilled. Get to the college, acquire skills and go to work,” he added.
He said his administration has increased higher education funding to Sh52 billion to ensure that students, especially those from vulnerable families, access higher education.
Deputy President Rigathi Gachagua on his part asked co-operatives’ officials to ensure they consult farmers before procuring loans.
“There is no need for them to take loans from commercial banks and before they take any loan, let them get the authority from farmers”.
In June this year, the Cabinet sanctioned the write-off of debts amounting to Sh6.8 billion owed by coffee farmers nationwide.
However, with the withdrawal of the Finance Bill 2024, the government allocated Sh2 billion to start off the process of waiving the debts.
The Cabinet also called on Parliament to expedite the enactment of governance reforms for co-operatives to establish institutional safeguards, including the requirement that borrowing by co-operatives is only authorised by farmers during annual general meetings (AGMs).
The coffee sector supports more than 600,000 people who have for years been complaining over poor pay…CONTINUE READING>>
