KAMONYI- Kenya Commercial Bank (KCB) Rwanda, has entered an agreement with rice farmers in Kamonyi District to help increase production.
The bank this week handed over a loan of Rwf 150 million to Mukunguri Rice Growers Cooperative (Cooproriz).
The loan was secured with the help of International Fertiliser Development Centre (IFDC), as part of efforts to help successful agro-based cooperatives.
Pie Eugene Rubagumya, the bank’s Branch Manager in Muhanga, disclosed that the farmers’ yield will act as collateral.
“This is part of the KCB Agric-business program. We intend to reach out to farmers through such incentives. Such loans are available as long as cooperatives exhibit a high level of management and accountability,” Rubagumya said.
He affirmed the bank’s commitment to support modern agriculture.
The cooperative won the trust of the bank, and farmers were eligible to request for more funds in future.
The cooperative’s coordinator, Usiel Niyongira, allayed fears that the cooperative is not in position to service the loan which carries an interest of 1.75 per cent.
“This is a fair deal. We have the capacity to service the loan after the sales made when rice prices rise. The cooperative has a turnover of over Rwf 400 million in a season,” Ntiyongira said.
The cooperative’s president, JMV Munyanziza, was hopeful the money would promote social transformation and improve the farmers’ welfare.
The cooperative, according to Munyanziza, plans to build a rice processing factory and modern storage facilities to improve the quality of their rice.