The Kapchorwa Commercial Farmers Association (KACOFA) is embroiled in a financial crisis over a 9 billion Ugandan shillings loan acquired from the Uganda Development Bank (UDB).
The loan, meant to boost the organization’s operations, has now turned into a financial burden, threatening the organization’s survival.
KACOFA, led by Mr. Kissa David, who is the husband of Kapchorwa District Woman MP, Hon. Chemutai Phyllis, used the funds to purchase advanced machinery and initiate sorghum farming in the lower belt of Kapchorwa District.
However, the investment in sorghum farming suffered a significant setback when the crops were destroyed by birds, leaving the association unable to recoup its costs.
Property Seizure Looms
Reliable sources indicate that UDB is considering seizing KACOFA’s assets to recover the loan.
Among the targeted assets is the organization’s land in the lower belt of Kween District, and the facility which the association is reportedly planning to sell to offset some of its debt.
However, insiders suggest that even the sale of the land and other properties will not be sufficient to cover the 9 billion loan.
Furthermore, there are growing concerns that the shareholders’ personal properties may also be at risk of being confiscated.
This has raised alarm among stakeholders, with many questioning the decision-making processes and risk management strategies employed during the loan acquisition and implementation of the project.
Broader Implications
The crisis has sparked conversations about financial accountability and the viability of large-scale agricultural investments in the region.
Critics argue that inadequate risk assessment, such as failure to address potential crop destruction by birds, has played a major role in the financial woes.
As the crisis unfolds, it remains unclear how KACOFA plans to navigate its financial troubles. The organization’s future and that of its shareholders hangs in the balance, with the risk of property seizures.
