Reduction of AFC interest rates from 10% to 3% and abolition of penalties on loan default…

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THAT, aware that agriculture is the backbone of the Kenyan economy and one of the avenues through which poverty reduction can be achieved; concerned that the Agricultural Finance Corporation (AFC) is charging high interest rates on loans and imposing heavy penalties on loan defaulters; the Senate urges the National Government to provide cheap credit to farmers by reducing the current interest rates charged by the Corporation from 10% to 3% and abolish the penalties imposed on loan defaulters.