President William Ruto has promised farmers that they will begin reaping from his Guaranteed Minimum Returns programme designed to cushion them from losses.
While addressing his supporters in Nyeri County on Saturday, August 5, Ruto stated that the programme will ensure that farmers earn a stable income even when market conditions are adverse.
The Head of State explained that it is his desire to see farmers profit from their economic activities, and not go through painful experiences as a result of changing climatic conditions.
“We must break the poverty cycle that is associated with farming in our country. We want agriculture to be transformed into a profit-making venture so that our farmers can earn more” Ruto who was addressing farmers gave assurances.
What is Guaranteed Minimum Return?
A Guaranteed Minimum Return (GMR) is a financial instrument that guarantees investors a minimum level of return, regardless of how the underlying market performs.
Guaranteed Minimum Returns are often offered by investment funds, insurance companies, other financial institutions as well as governments that seek to cushion the local population.
There are two main types of Guaranteed Minimum Returns. The first one is known as Nominal Guaranteed Minimum Return which fixes a percentage of the initial investment.
While the second type, Real Guaranteed Minimum Return, guarantees a fixed percentage of the initial investment adjusted for inflation.
Guaranteed Minimum Returns can be a good option for investors like farmers who are looking for a way to protect their capital against market volatility.
However, it is important to note that Guaranteed Minimum Returns do not guarantee profits. If the underlying market performs poorly, investors may still lose money.
Ruto's Plan for Guaranteed Minimum Return
In his plan, President Ruto's Guaranteed Minimum Returns will only apply to farmers who have been registered on the government database, the Kenya Integrated Agriculture Management Information System (KIAMIS).
To register on KIAMIS, farmers will need to provide their personal details, including their name, ID number, and contact information.
They will also need to provide information about their farms, such as its location, size, and the crops they grow. This programme is facilitated by village elders through the local agricultural extension office.
The staff at the local agricultural extension office will help farmers to fill out the registration form and provide them with information about the benefits of being registered.
Once the farmers are registered, they will be able to access a number of government services, such as subsidised fertilisers, crop insurance, and technical assistance.
They will also be able to participate in government programs that support agricultural development, including Guaranteed Minimum Returns.
