President Uhuru Kenyatta has written off Sh2 billion coffee debts during his Kirinyaga tour on Tuesday.
Uhuru asked the farmers to
collect the title deeds they had deposited offered as security.
"I urge farmers whose debts have been written off to use any credit they receive to develop their farms and not spend it on frivolous pursuits," Uhuru said.
Speaking while addressing Kirinyaga residents, the President urged the
farmers to take back their title deeds that were tied to the loans.
The writing off of the debts comes after Uhuru to ensure all the debts are settled, terming them a huge drawback to better returns.
In July, Treasury CS Henry Rotich said the government set aside Sh700 million to scrap off the debts which will free farmers who have been losing money every season repaying the loans.
The loans were accrued decades ago when coffee farming faced hurdles.
The National Debt Write-off Programme was launched by President Uhuru Kenyatta, then Finance minister, in December 2011.
The Treasury released Sh797 million to eight financial institutions and unions, which loaned the money to farmers.
The funds released in the first phase covered 27 per cent of the total debts.
Last financial year, the government set aside Sh500 million for the debt write-off.