Wednesday, August 17, 2011

Kenya: MPs urge Govt to clear farmers' debt

by Daily Nation Kenya


Budalang'i MP  Ababu Namwamba rallied MPs to pass a resolution asking the government to write off Sh1.3 billion in debts owed to the Kenya Farmers Association August 17, 2011. FILE

Budalang'i MP Ababu Namwamba rallied MPs to pass a resolution asking the government to write off Sh1.3 billion in debts owed to the Kenya Farmers Association August 17, 2011. FILE

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted Wednesday, August 17 2011 at 14:42

Grain farmers across the country Wednesday got a boost after Parliament passed a resolution asking the government to write off Sh1.3 billion in debts owed to the Kenya Farmers Association.

Mr Ababu Namwamba (Budalang’i, ODM) said that if the 65,000-member association is shored up, then the country will be able to achieve food security.

“Convinced that the immediate resuscitation of KFA is a matter of strategic national importance; this House urges the government to immediately avail a grant of Sh1.3 billion to KFA to help clear the bad debts and enable it restructure and contribute to the rapid growth of the agricultural sector in line with Vision 2030,” said Mr Namwamba as he rallied MPs to support the motion.

He said farmers in the North Rift had been left at the mercy of the cartels and middlemen, leaving them unable to reap decent profits.

“If we can do it for the coffee sector, we can do it for the maize sector and for the sugar sector,” said Mr Namwamba.

Agriculture assistant minister Kareke Mbiuki and Special Programmes minister Esther Murugi backed the motion saying it was key to ensuring that the perennial importation of food into the country is checked.

Ms Murugi added that the National Cereals and Produce Board will also have to be restructured so that it is able to mop up maize as it is harvested and stock up the Strategic Grain Reserves.

She said the loan owed to National Bank had to be written off to help the country realize its development agenda. Other debtors to the association are Barclays Bank and Workers Union.

Nominated MP Musa Sirma seconded the motion and blamed Attorney General Amos Wako for raising queries about the ownership of KFA when a plan to write off the debts was mooted.

“KFA is owned by purely by peasant farmers,” said Mr Sirma.

“They wrote off the one for coffee because some people at the Treasury believe that this country belongs to the coffee farmers.”

He wondered why the AG did not raise similar questions when the government was falling over itself clearing debts for Uchumi and the Kenya Planters Co-operative Union.

MPs who contributed to the motion unanimously supported it saying that is has to be implemented as soon as possible as one of the strategies to combat hunger.

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