Partnership to enhance local agro production
26 March 2014, 09:29
Nairobi - Farmers are poised to benefit from a newly-forged partnership involving the national treasury and international organizations.
The agreementallows farmers to get loans at reduced costs in order to spur the growth of the agricultural sector.
The international organizations, Alliance for Green Revolution in Africa and International Fund for Agricultural Development, have provided a US$ 10 million risk sharing credit facility that will enable ease of access to credit from banks and thus make it possible for farmers to borrow.
The new arrangement will see farmers across the country access credit from different banks at interest rates of between 10 percent and 15 percent.
This is a drop from the 18 percent that several banks are currently offering.
Speaking during the signing of the agreement, Treasury Cabinet Secretary, Henry Rotich, said farmers were now borrowing from as high as 18 percent.
He said the facility was therefore going to be very beneficial in terms of the costs.
“The rates of between 10 percent and 15 percent will be beneficial to farmers though we would have liked for it to be single digits and we are working towards that to ensure that we lend to farmers at single digits rates,” he said.
– CAJ News
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