This archive report was first published on 13 January 2020.
On January 13, 2020, a Sacco in Embu County made a move to ease the financial burden on tea farmers by extending the loan repayment period from one to two years.
The decision, made by the County Sacco Society, aims to mitigate the impact of a low bonus payout to tea growers in the previous year.
According to Marketing Manager Lenny Muchangi, many farmers have struggled to pay back loans due to the decrease in tea bonuses.
‘Many farmers haven’t been able to pay back loans following a decrease in tea bonuses,’ Muchangi said during a members forum at Kanja Market.
The Sacco's move is expected to prevent a rise in default rates among its members, who are mostly farmers.
