Panic in the tea growing region after Green Fedha Limited seeks to recover loans amounting to millions of shillings advanced to farmers.
Already farmers in zones four and five through their directors have protested demand by the management of the financial institution on recovery of the loans from the mini bonus payment scheduled to be paid by the end of the week.
The message sent to the growers reads in part, “Dear customer, for sustainability measures, this is to inform you that GFL will deduct 30% of your Mini Bonus towards loan repayment”.
Julius Mwai from Nyeri said it was unfortunate that the lender was seeking part of the mini bonus that the farmers expect to use in sending their children back to school next month.
Mwai from Chinga tea factory say they expect to receive March green leaf payment alongside the mini bonus by April 5. “The message to the farmers is a shock as we have been aware that the deductions are affected at the end of the year,” said Mwai pleading with the management of Green Fedha to consider their plight.
Mary Mugambi from Meru County on her part called on KTDA to intervene to save the growers heading back to the shylocks for financial support.
She said if 30 percent will be deducted from her proceeds, she will be forced to seek financial support from the expensive bank loans or shylock services. “I hope our plea will be heard as it will be painful when we had planned on the utilization of the money for personal development,” said Ms Mugambi.
Mt Kenya tea directors chief whip Mr Nahason Ngari said the demand by the Green Fedha Limited to deduct the farmers dues was inappropriate.
Speaking to the County Times, Ngari said the farmers are aware that deductions for loans from their proceeds are affected through the annual tea bonus at the end of the year. The farmers’ representatives, he said, will remain steadfast and stop the unwarranted deductions as the lender should focus on the final bonus payment as the agreement demands.
“Deducting 30 percent of the growers’ proceeds amounts to punishment and intimidation, and the local directors are against the move,” said Ngari.