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{
    "id": 807988,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/807988/?format=api",
    "text_counter": 476,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Kenya Limited has further threatened to take legal action against the farmers and or forward the matter to the debt collectors for recovery of the outstanding loan amounts. The agreement between the farmers and EAML was that the farmers would pick inputs from EAML, use them to farm and subsequently sell barley to EAML. The said agreement also authorized EAML to deduct the loan amount owed by the farmers from the proceeds payable to them and remit the same to the financing entity, the Co-operative Bank of Kenya Limited. There was no third party agreement signed between the farmers of Narok and the Co-operative Bank of Kenya Limited. As such, the Co-operative Bank of Kenya Limited is not the intended beneficiary of the agreement entered between the farmers and EAML and cannot, therefore, purport to enforce it. The CRB was introduced into the banking industry by the Central Bank of Kenya (CBK) to ascertain the credit worthiness of customers for loans. This was done following the gazettement of the Banking (Credit Bureau) Regulations 2008 on 11th July, 2010. The regulations were issued pursuant to an amendment to the Banking Act 2006. The work of the CRB is noble. However, in some cases, it has brought a lot of agony and misery to many Kenyans as they find themselves listed by the bureaus without being heard or given notice to explain themselves. This is the case in Narok County where many farmers are victims of these lending institutions that they have listed them at the bureaus, therefore, hindering their operations as they cannot borrow any more to fund their activities. I urge this House to review the legal framework that created the bureaus with a view of not only protecting the lender but also the borrowers. I, therefore, bring this matter to the attention of the Senate and urge the relevant Government agencies to investigate this fraud on farmers from Narok County with a view to reconcile the accounts of the affected farmers; compel the Co-operative Bank of Kenya Limited to immediately delist the said farmers from the CRB and withdraw the demand letters it has written to them on the basis that the bank has no lawful authority under the aforesaid agreement to demand for payment directly from farmers. Farmers were introduced to insurance policies in 2009. At that time, the rate of households in Kenya where farmers were taking insurance policies against their crops, it was about seven per cent. Subsequently, by 2014, that rate had increased to 34 per cent. Today, that rate has gone down to three or four per cent. The reason farmers have opted not to take insurance policies is because the insurance companies are not honouring their commitment. The farmers of Narok have suffered. It is wrong for EAML to contract the out growers to grow barley for them and allow two companies; that is, UAP and CIC, to insure their crops. However, when the crops are damaged by heavy rainfall, the insurance companies and the EAML disappear leaving farmers on their own. The farmers who did not have an agreement with the Co-operative Bank of Kenya Limited are forced to pay the loans. This matter has been brought to this House as a Petition. However, after talking to the Speaker, he agreed to commit it to a relevant Committee so that farmers in Narok County get what is rightfully theirs. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}