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{
    "id": 374415,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/374415/?format=api",
    "text_counter": 115,
    "type": "speech",
    "speaker_name": "Hon. Angatia",
    "speaker_title": "",
    "speaker": {
        "id": 2153,
        "legal_name": "Ayub Savula Angatia",
        "slug": "ayub-savula-angatia"
    },
    "content": "Thank you, hon. Speaker. The loan projection for the 2013/2014 was planned and lent out of the total of Kshs2 billion. The status report on performance of loan granted in period 2004 to date: the Corporation disbursed Kshs13.9 billion during the period under review and the funds were used to finance 60,228 farmers across the country. Status report on the performance of loans granted to the lower Eastern Region from 2000 to date; AFC serves the lower region through two branches, in Machakos and Wote Towns. In the period under review, the corporation disbursed a total of Kshs454 million in the form of loans in the region. Out of that amount, Kshs90 million is outstanding in arrears. This is a repayment rate of 76 per cent which is so considerable. The funds were used to finance 2,298 farmers and agro-entrepreneurs to undertake various projects that include coffee rehabilitation; livestock off-take activities; horticulture; small-scale dairy farming and cotton production processing. Hon. Speaker, with regard to update on the utilization of Kshs700 million released to AFC for drought relief, the Government released Kshs700 million to AFC during the year 2012/2013 being part of the Kshs2.1 billion awarded to the corporation by Parliament under the Ababu Namwamba Motion for drought relief. The award was intended to cushion the farmers and the corporation from the effect of drought which occurred in 2009 and 2010 resulting into inability by a number of farmers to repay the loans. The grant was meant to enable the corporation to implement debt suspension and compensation to the corporation. Hon. Speaker the policy statement and strategy for dealing with appeals for write off in future is as follows: I will begin with the consequence of the loan write off. Although the corporation recognizes that there are farmers who have been genuinely hit by drought and other natural calamities, the corporation is of the view that blanket write off of loan is not a viable option. The following reasons support that: Erosion of the corporation’s capital base; loss of support from donor partners; potential impact on funds from other Government agencies - you know that Kenya Sugar Board, Coffee Development Fund and Livestock Enterprise Fund give their loans through AFC - and creation of negative culture in the borrowing climate. The next one is the viable option out for rehabilitation of farmers facing debt repayment challenges. This includes restructuring of the debt as the normal commercial banks do; loan rescheduling; suspension of interest accruals; refinancing and debt suspension. In order to support the farmers who have been affected, the Government has recommended that it will increase the subsidies and give them insurance. Hon. Speaker, I would like to give a breakdown of the loan write off in 2004 according to counties. Trans Nzoia County, that is, Kitale, Kshs362 million; Eldoret, that is, Uasin Gishu, Kshs574 million; Kericho, Kshs12 million; Kakamega, Kshs91 million; Kisii, Kshs10 million; Kisumu, Kshs580 million; Migori, Kshs100 million; Molo under Nakuru County, Kshs108"
}