The Agricultural Finance Corporation will partner with Busia county government to manage the county's Agricultural Development Fund on behalf of farmers.
Busia Governor Sospeter Ojaamong on Tuesday said his government will put the revolving fund in AFC to disburse to farmers on its behalf.
“We are committed to partnering with AFC to pump more money in the cooperation. I know MCAs understand the need to empower farmers economically through agribusiness,” Ojaamong said.
He spoke when he presided over the commissioning of the new AFC office in Busia town.
The governor urged cane and maize farmers to take advantage of the availability of two sugar factories and a maize milling plant to access loan credits from AFC to increase their production.
Ojaamong said uptake of loans especially among the youths was still at a low of four per cent. He urged for the softening of borrowing conditions to allow more youths and farmers to access loans for economic empowerment.
He said he would work with MCAs to channel more funds to AFC for the benefit of farmers.
AFC chairman Franklin Bett said lack of title deeds was a major challenge facing farmers in their bid to provide collateral to acquire cheap loans.
He urged Ojaamong to take up the matter with the Ministry of Lands to ensure they expedite issuance of titles.
Bett said a letter to AFC by Busia Chamber of Commerce chairman Peter Kubebea asking for the transformation of AFC into a bank was still under consideration.
He said they have plans to launch Islamic products to enable the Muslim community to borrow from the corporation.
AFC managing director Lucas Meso said the corporation started its operations in the county in 2016 with zero portfolios but which currently stands at Sh80 million.
“We want Busia county to feed the entire Western region. Bunyala has over 2,000 acres of land under rice which can support rice needs of the entire region,” Meso said.
edited by peter obuya
