A Murang’a farmers’ Sacco has rescheduled loans worth more than Sh500 million to offer reprieve to members hard hit by the Covid-19 pandemic.
Most members of Amica Sacco are tea and coffee farmers. CEO James Mbui said during the annual general meeting that the economic slump caused by the pandemic made it difficult for many members to repay their loans.
The majority of tea farmers were unable to service their loans even after receiving their mini-bonus in April and the bonus last month.
Mbui said even though the Sacco has been widening its membership base to include non-farmers, the majority remain tea and coffee farmers, and traders whose businesses were affected by Covid-19 control measures.
“We had to reschedule the loans as many of our members were unable to service them as they were already struggling with their daily upkeep,” he said.
The Sacco has strengthened its digital platforms to facilitate out-of-office transactions. Currently, 40 percent of its transactions are conducted through digital platforms.
“Digital transactions have reduced our operating costs while enabling us to serve more people from the comfort of their homes,” he said.
The Sacco is now helping school proprietors to get the institutions running. Most private schools took a great hit following the closure of learning institutions for more than seven months.
Chairperson Hezron Muchiri said the Sacco supports agriculture by financing farming activities.
“Cooperatives such as ours deal directly with farmers and understand better the challenges they face. The government should consult us when drafting agricultural policies,” he said.
The poor performance in some agricultural sub-sectors such as coffee is due to low production, which limits farmers’ returns, he said.
Muchiri urged the government to release the Sh3 billion Cherry Advance Revolving Fund cash that was meant to support coffee farmers and boost cherry production.
The funds will go a long way in cushioning farmers from the economic effects of Covid-19 while allowing them to continue tending to their coffee, he said.