NYERI, Kenya, Jan 12- Agriculture Cabinet Secretary Peter Munya has threatened to dissolve management boards of coffee cooperative societies who are a denying farmers their right to borrow from the Sh3 billion coffee advance cherry fund.
Speaking at Karatina stadium during a public participation meeting to sentisize farmers on a new coffee bill, Munya said that it is wrong for board members of socities to deny farmers their right by failing to sign forms presented to them.
“From now on my office will crack the whip and dissolve these boards ,it has come to our notice that the reason why many farmers are not borrowing is due to the fact that society officials are failing to sigh these forms ,this is unacceptable, ” said Munya.
He said that so far a huge portion of the fund set aside to revive the sector is lying idle at cooperative bank as many farmers are yet to borrow loans which only attract an interest rate of 3 percent.
He said that board members have also come up with a scheme where they lie to farmers that if they go for the loans from the fund they will have given their milling right to New kenya planters cooperative union .
“I want to tell coffee farmers that propaganda going around in their socities that by borrowing from fund that takes them back to new KPCU is untrue ,no one is forcing farmers to mill their coffee so they at liberty to choose miller of their choice even after borrowing ” said Munya.
He said that society officials are driven by kickbacks from banks and saccos and that is why they do not want farmers to benefit from the government sponsored fund.
“As a ministry we cannot sit back and watch farmers to incur huge debt as result of high interest borrowing so we have to act ” Munya said in conclusion.
