RATIN

KFA woes cause agony to abandoned farmers

Posted on March, 15, 2017 at 11:12 am


Farmers’ access to cheap seasonal credit and farm inputs has for the last 34 years been limited following mismanagement challenges at Kenya Farmers Association (KFA).

Former shareholders want the current entity, which is a limited liability, to be bailed out of its current financial woes, their dividends paid and a KFA meeting convened.

What puzzles farmers is how the entity was turned into a limited liability firm. Farmers want it to be turned into a cooperative entity which would enable them to access credit facilities and subsidised farm inputs as was the case before 1983.

Drawn from North, South and Central Rift Valley, the farmers told People Daily that they were not consulted during the change. “We have been in the dark about what is happening in once a vibrant farmers cooperative union.

Its accounts have not been audited since 1983 when one of its founders, the late Reuben Chesire, was hounded out of office of the chairman” said Cheruiyot Koech, a shareholder from Turbo in Uasin Gishu County.

He said that in 1983 KFA was worth Sh6 billion in moveable and immovable property, claiming that most have since been sold or grabbed by powerful individuals in successive governments.

Kipkorir Menjo, a director says the debt that crippled activities at the Nakuru-based company has almost being cleared. He adds that after clearing it, an AGM will be called and election of new directors held.

“KFA had a huge debt. It took loans from commercial banks to keep it afloat. We have cleared most of them,” he said. Menjo says most of its property including land were auctioned to recover loans and called on farmers and shareholders to exercise patience.

The cash-strapped company recently imported only 20 metric tonnes of subsidised fertilisers. He adds that the company will not enjoy the monopoly it once had.

In the 2003/2004 financial year, under the Strategy for Revitalisation of Agriculture, Parliament approved a Sh2 billion guarantee facility to KFA but the money was not released.

In August 2011 during a North Rift Investors Conference, Deputy President William Ruto, then Agriculture Minister, opposed plans by the government to inject Sh1.3 billion to revive it.

“KFA is owned by small groups of people. Unless the issue of ownership is sorted out, it’s not proper for public funds be used to bail it out,” he told participants. “For it to receive help from the government, farmers must first own it,” said Ruo.

The cooperative’s functions, which included handling, storage and marketing of wheat, were transferred to the National Cereals and Produce Board (NCPB)in 1979. Before 1983, KFA exported wool from Merino sheep from Kapcherop, Narok, Molo and Nyahururu farms.

Erisha Kuluo, the secretary of Narok Farmers Association, said KFA abdicated its responsibilities, claiming had it been in operation it would have lessened farmers dependence on AFC and other financial institutions for provision of loans and seasonal credit.

“Acreages under food crops have gone down because it is expensive and cumbersome to get seasonal credits to buy farm inputs. Farmers have few choices at their disposal,” he said.

Source: MediaMax Network