Kenya Tea Growth Company Ltd board addressing the press at their places of work. PHOTO | SILA KIPLAGAT | NMG

Tea growers have obtained Sh7.5 billion in loans in six months from the Kenya Tea Growth Company (KTDA) subsidiary Greenland Fedha Restricted.

The microfinance lower its rate of interest to eight p.c in December 2021, down from the 21 p.c it was charging, saving farmers Sh500 million throughout the interval, the lender mentioned.

Learn: Aid for tea farmers as KTDA unit cuts lending charges

The excessive pursuits had seen farmers and the federal government elevate concern, questioning how growers may very well be charged exorbitant charges, increased than the 12 p.c business banks cost, when borrowing cash from their entity.

“We’ve elevated the amount of lending and, within the course of, saved for the farmer Sh500 million, which we’d have collected as curiosity. The cash is now being retained by the tea grower, and that is the correct method of supporting them,” Greenland Fedha chairman Chege Kirundi mentioned Tuesday.

Learn: KTDA farmer loans enhance to Sh2.7bn after deep price lower

The microfinance makes use of farmers’ inexperienced leaf as collateral to problem loans.

Mr Kirundi mentioned growers apply, obtain and repay their loans by means of their cell wallets.

“We’re digitally enabled, and farmers have realised that the system is handy and low cost,” he added.

The chairman mentioned they’ve about 650,000 growers as prospects. “Out of 650,000, not everybody has borrowed, and we try to counterpoint and lengthen our providers to all of them,” he mentioned.

The growers borrow for tasks, paying faculties charges and assembly their each day wants.