Embu — Coffee farmers affiliated to Embu County Coffee Mill and Gakundu Cooperative Society are on the edge following stories that their homes are set to be auctioned over unpaid loans amounting Sh140 million acquired from Commodities Fund.
The Government Agency, every week in the past, via a public understand, declared goal to liquidate a number of homes held as collateral for loans complicated to more than a few clientele in a fortnight via both public sale or non-public treaty.
The County Mill, comprising 24 societies acquired a Sh90 million mortgage from the company 8 years in the past for the building of a joint milling plant that has since stalled, whilst Gakundu secured a mortgage of Sh50 million the identical duration to modernize its factories.
Both loans are stated to have ballooned exponentially for non-service.
The County Mill built at Kavutiri used to be an initiative of Murue Cooperative Society aimed toward consolidating milling and advertising of all Embu espresso to extend farmers’ profits via price addition and hunting down middlemen.
The affected farmers have expressed fear over the subject and feature appealed to each the nationwide and county executive to avoid wasting their belongings from public sale.
Murue Factory farmer Bernard Kinyua stated the mill used to be the handiest undertaking that may have introduced all farmers throughout the county in combination to lend a hand them reap large via joint milling and advertising of the commodity.
“It is a project that could have made us make a huge saving and boost our earnings by ensuring all coffee produced in the county is milled and marketed at one point,” Kinyua stated.
Another farmer, John Nyaga stated they had been appalled by means of the transfer, since the former Governor Martin Wambora had pledged to help in paying the mortgage after his management took over the control of the mill to help all farmers.
“He had promised to be remitting Sh. 10 million annually to offset the loan and it is unfortunate that he did not keep part of his bargain, thus exposing our investment to auction,” the farmer stated.
Gakundu FCS chairman Robert Ndwiga stated their mortgage went against development of the infrastructure of the society’s factories to extend potency, however farmers had been not able to pay off after manufacturing declined owing to wrangles and climate adjustments.
“Production has over the years gone down from 2.5 million kilos to around 700,000 per annum that cannot sustain repayment as well pay farmers and meet other operational costs,” he stated whilst interesting to the executive to rescue them.
Governor Cecily Mbarire has promised to soak up the subject with the Ministry of Agriculture, in order to searching for a waiver to lend a hand them get again on their ft.
“I cannot allow our factories to be auctioned under my watch. My work is to protect the property of our people and will do all I can to ensure the matter is sorted out speedily,” she stated, whilst pleading with farmers to not surrender. – Kna
Author: Capital FM
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