Despite the fact that government announced a shillings 30 billion-bank loan for agriculture last year, farmers are still struggling to access the money.
In 2009/2010 financial year budget, Finance Minister Syda Bumba provided shillings 30 billion to support agro processing.
According to Bumba, participating banks were expected to contribute another shillings 30 billion and give lend to farmers money at a less than 10 percent interest rate.
Gideon Badagawa, the Private Sector Foundation Executive Director says that farmers have not yet benefited from the money.
///Cue In" Government pus aside money ...
Cue out. ...that have benefited from this fund"//
He says farmers who attempted to access the facility were frustrated because of lack of transparency in the lending process.
Augustine Mwendya, the Agribusiness Director at National farmer Federation says that individuals not directly engaged in Agricultural production are instead accessing the money.
Mwendya claims that they have information indicating that most of the money has been borrowed by businessmen to buy heavy transport trucks.
He says that the agricultural loan facility should be revisited if farmers are to benefit.
However State Minister For Finance in Charge of General Duties, Fred Jachan Omach says that the partner banks have been overwhelmed by the demand from farmers.
Omach says that he is not aware that some farmers are finding difficulty to access the money.