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How Coffee farmers can get Cherry Fund advance pay for their crop

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Cherry advance loan was one of the strategies which will see coffee farmers acquiring loans to improve their farming

By Musa Radoli

The Coffee Cherry Fund Revolving Fund is open strictly to smallholder farmers, but there are conditions they must fulfill to access the Kshs. 3 billion Fund administered by the New Kenya Planters Cooperative Union (NKPCU).

According to the NKPCU acting managing director Timothy Mirugi, the applicants for loans from the revolving Fund will have to meet certain requirements before their applications are processed by the fund’s board and once approved the monies are directly transmitted to the applicant’s accounts.

Mr. Mirugi said: “All these are set down legal requirements to process the loans as needed by a majority state corporations and even commercial credit issuing financial institutions. Our loan processing procedures are fast to ensure that our applicants access the monies they require in their accounts immediately it is approved.”

The processing, the Managing Director said takes less than a week to approve once the application for the loan has been received at the Fund’s headquarters.

Some of the priority requirements for the farmers’ eligibility Of CCRF loan are that if a person applying can proof beyond reasonable doubt the she or he is a citizen of Kenya through the relevant legal identification documentation.

That she/he is a member of a registered coffee co-operative society, having a national identity card or passport, a membership card of a coffee farmers co-operative society, ownership of a smallholder coffee estate, who is affiliated to New Kenya Planters Co-operative Union.

In that respect according to Mr. Mirugi there are two types of forms to be filled for submission, which is forms 1A for individual smallholder applicants and forms 1B for the latter category of applicants all of which are accessible from the NKPCU website.

“Upon receipt of the application which must be directed to the administrator, the official evaluates them and recommends to the board whether to approve or dismiss individual applications and any communication from the board shall be communicated to every applicant within 14 days, but we endeavor to do that within a week,” he said.

That any applicant who is dissatisfied with the board’s decision is at liberty to apply to the board for a review of that decision which is done immediately.

According to documents seen by Smart Farmer the loan is advanced 40 per cent of the prevailing average sales price at the Coffee Exchange. Kshs. 20 per kilo delivered cherry. 40 per cent payment rate to members by a cooperative society for the immediate past crop year.

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