Ruto Unveils Dual Farming Loans
Wednesday, August 2nd, President William Ruto announced that his administration has developed a comprehensive plan to guarantee farmers’ access to affordable credit facilities.
Farmers can now obtain financing through the Warehouse Receipt System Council (WRSC) and Agriculture Finance Corporation (AFC), the Head of State revealed at a press briefing on subsidized fertilizer held at the State House in Nairobi.
The loans will be modeled after the Hustler Fund, which offers below-10% interest rates to encourage low-income earners to cultivate cash crops.
“We will implement the Warehouse Receipt System Act of 2019, which establishes a regulated and structured trading system for agricultural commodities.
The President said of the first loan facility, “This system creates an ecosystem with opportunities for the private sector and NCPB to provide a trading platform that connects buyers and sellers and facilitates agricultural producers’ access to credit.”
The Warehouse Receipt System Act of 2019 establishes the legal framework for developing and regulating an agricultural commodities warehouse receipt system and council.
A council created by the legislation is required to purchase agricultural products, obtain loans and funds, invest, and execute contracts.
Farmers from across the nation will also apply for financing through the Agriculture Finance Corporation (AFC) to increase agricultural output.
Ruto revealed in this passage that he would increase AFC’s budget from Ksh2 billion to Ksh10 billion to provide farmers with affordable credit.
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“The credit will be provided at single-digit interest rates to further reduce our production costs and increase our productivity,” the President promised.
How to request the loans
The Warehouse Receipt System Council (WRSC) reports that producers will use stored crops as collateral to obtain loans from the National Cereals and Produce Board.
Once implemented, it is anticipated that over 3.5 million farmers, the majority of whom are small-scale entrepreneurs, will benefit from the loan facility.
Farmers who are interested in the loan facility must submit written applications or physical copies, or send an electronic copy to info@wrsc.go.ke.
To secure his legacy, Ruto appointed Felicity Nkirote Biriri as the chairperson of the Warehouse Receipt System Council for a three-year term on June 30.
In contrast, the Agriculture Finance Corporation offers eight distinct loans to producers. Unlike WRSC, it also provides livestock producers with credit facilities.
AFC offers financing for machinery, agribusiness, livestock, and fisheries development, as well as cash crops.
Other loans include the Horticulture and Floriculture Development Loan, the Water Development Loan, the Seasonal Crop Credit, and the School-Based Loan.
On www.agrifinance.org, farmers can view the various available loans and their stipulations.
Ruto Unveils Dual Farming Loans