The Agricultural Finance Corporation (AFC) has this past week cancelled the debt owed to them by a large number of Kenyan farmers. Debts have been waivered in an effort to improve agriculture in the country, which is targeted at improving food production by small-scale farmers. Debt removal will allow farmers to reinvest revenues into their farms rather than on paying back loans. This is seen as a food security initiative by the government; although they have been many genuine farmers who have fallen victim to harsh realities of Kenyan agriculture, many who borrowed from AFC misused funds on non-agricultural activities. Or maybe its time for a new agricultural lending and borrowing agency that caters to small-scale farmers, where lending is done at a micro-financial level. Creating an ideal situation where farmers can ask for money targeted to specific on-farm investments and will also be able to receive guidance on how to deal with debt.

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