The Agricultural Finance Corporation (AFC) has broke grounds to mark the commencement of construction of their offices in Marsabit. AFC board chairman Franklin Bett officiated the ceremony and said the branch aims to ensure that the enormous agricultural potential is exploited to enhance production for development.
“This corporation will ensure that farmers access affordable loans and service their agri-business needs in a flexible manner. The government is committed to making every Kenyan self-reliant by extending credit that was not only affordable but flexible to enable them to generate wealth and transform lives,” said Mr Bett.
Scaled down financial operations.
The Marsabit office project is being funded by USAID Kenya at a cost of Sh 24 million. Currently farmers in need of credit from AFC have been traveling over 300 kilometers to Meru for the essential service since the corporation closed its branch in Marsabit in 1989 owing to scaled down financial operations. The new branch would be operational by April next year.
The re-entry of the corporation in Marsabit could help in reviving both crop and livestock production and also facilitate starting of cottage industries like those of cheese making, flour milling and milk pasteurizing and packaging.
The board chairman called on residents of Marsabit County to make use of loans being offered by the corporation in order to improve their food security and create wealth. He pointed out that the government would offer loans with low interests to all farmers without bias for the revival of crop and livestock farming in the region.
Mr Bett also disclosed that the welfare of Muslim farmers who have been locked out of loans offered by many financial institutions has been factored in adding that interest free Sharia loans would be availed to them with ease. He assured that the loans would be processed fast at a lower interest rate of 10% compared to the offer by commercial banks of 13%.
