Interest on Green Fedha Loans to drop to eight percent from 21 percent
The Mountain Journal
Reputable audit firms will be engaged by the government to conduct forensic audits on the performance of the 69 tea processing factories.
The Tea Board of Kenya has been charged with responsibility of identifying the firms that will be engaged in the audit purpose, designed to be concluded in December.
Agriculture Cabinet Secretary Peter Munya said the firms to be listed to conduct the investigations in the factories should not have been engaged by the KTDA.
“The report pointed fingers at specific people, and we formed an opinion to conduct an audit in all the factories to help unravel the network used by the cartels.
The interest of the audit is to unmask the inside of the tea trade, buying of land where trees were planted, employment, purchase of wood, employment among other irregularities,” said Mr Munya.
He spoke at Makomboki, Githambo and Kiru tea factories in Murang’a County, during a tour where he was hosted by directors led by KTDA board member Chege Kirundi and Chairman of Tea sector Lobby Irungu Nyakera.
Munya said the government ordered investigations at the agency after the farmers continued to receive poor payments while the price of the product in the international market performed better.
The reforms introduced in the sector are designed to reduce the production cost, thus increasing payment to the growers who are the majority.
“ There has been rot at the agency spearheaded by cartels that had controlled the auction market and presence of uneconomical outlets established for the purpose of swindling farmers’ resources,” said Munya.
KTDA National Chairman David Ichoho said they have kicked off a structuring of the agency with the interest rates charged at the tea farmers at Green Fedha lowered to eight percent down from 21 percent. The new rate will be effective from December 1.
“ The Green Fedha will be rebranded to give farmers a relief after much of the suffering they have been going through is associated with it,” said Ichoho.
He said the gains achieved include better returns at the auction after the introduction of the reserved price, as some of the senior managers were sent on compulsory leave to pave the way for investigations.
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