News Column

AFC Launches Insurance Cover for Farmers

February 6, 2014

Stanley Magut and Cynthia Koech

AGRICULTURAL Finance Corporation is coming up with an insurance cover for farmers benefiting from their loans. The package, which is at its final stages of formation, will be the first insurance cover for farmers from the corporation and will be ready by end of March. AFC managing director Lucas Meso said the insurance will only cover drought. "The package we are coming up with will cushion farmers benefiting from our loans against drought for agribusiness activities," Meso said. Many farmers in the country who took AFC loans last year and unable to service the loans wanted their debts written off due to poor yield as a result of drought. Others from Eldoret had two years ago complained that they were unable to repay the loans after the 2007/08 post poll violence affected their stability. "We gave them time to settle and they were able to pay the loans. Now that we are coming up with the insurance package, it will enable farmers do developments with the loans knowing that the drought risk has been covered," Meso added. The newly appointed AFC chairman Patrick Osero said they are planning to make the corporation a bank where it will be a one stop-shop for farmers. "We want to make it a bank so that it will offer farmers better financial services and there will be no need for you to worry looking for any financial institution for help. We are here for you,"Osero said. One of the grain farmers in the town Nicholas Kositany welcomed the idea of covering farmers against the drought.

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Source: AllAfrica

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