According to sources, a kilogram of Chia Seeds cost Rwf90,000, and a hectare was planted with 2 kilograms that yielded 1000 kilograms. Upon harvest, a farmer used to receive Rwf3,000 per kilogramme. The returns on this investment were quite impressive, with a single hectare yielding a harvest worth Rwf3 million in just three months.
However, the failure of Akens and Kernels Ltd to pay farmers for their produce has left many Chia Seeds farmers in debt and at risk of losing their properties.
Investing in Chia Seeds was considered a profitable venture, with a single hectare yielding a harvest worth Rwf3 million in just three months.
The total investment made by a farmer was Rwf1,574,000, which included Rwf180,000 for seeds, Rwf 200,000 for farm maintenance, Rwf 300,000 for land rent (to tenants), as well as expenses for fertilizer, weeding, planting, and harvesting. This meant that a farmer would generate a profit of Rw1,574,000 in three months per hectare.
However, the happiness of the Chia Seeds farmers did not last long because the company that bought their produce, Akens and Kernels Ltd, failed to pay them and secure a market for their last produce. This has left many farmers in debt and struggling to make ends meet.
Affected farmers include those grouped in Chia Seeds Farmers’ Cooperative in Ngoma District. They hoped to sell 450 tons of Chia Seeds at the end of last year, but not a single kilogram was sold.
This issue is in addition to another major debt worth Rwf248 million that Akens and Kernels Ltd owed them in 2021. The cooperative has 558 members, but 195 did not receive payments, leaving them in a dire financial situation.
Some farmers were hit particularly hard and were forced to sell their produce to unlicensed buyers at a giveaway price between Rwf500 and Rwf800 per kilogramme, despite the previous promise of Rwf3000 per kilogramme upon harvesting time.
In the meantime, Akens and Kernels Ltd entered into agreements with over 3800 farmers to invest in Chia Seeds, but the situation has turned sour, as they claim debts worth over Rwf27 billion.
{{A drop into the sea}}
The issues facing Chia Seeds farmers have come to public attention after several meetings aimed at finding a solution failed to yield any results. The affected farmers come from 17 districts and have not received payments after supplying their produce to Akens and Kernels Ltd.
The Ministry of Local Government (MINALOC), which was among the institutions that encouraged farmers to grow Chia Seeds as a cash crop, acknowledged the problem.
MINALOC revealed via Twitter handle that 950 farmers are owed payments worth Rwf1.3 billion, based on presented delivery notes.
The message further stated that from 30th March 2023, farmers started receiving their money at the agreed-upon price as per current market prices. MINALOC explained that farmers from 11 districts with complete delivery notes have already received payments, and the program is ongoing.
However, the President of the Committee of Chia Seeds farmers at the national level, Emmy Nsengiyumva, has told IGIHE that only selected farmers have received payments, and not all farmers claiming payments owed by Akens and Kernels Ltd.
He noted that there are over 3000 farmers who invested in Akens and Kernels Ltd through agreements, and ‘the payments made so far are like a drop in the sea’.
Nsengiyumva disclosed that only farmers who had a delivery note were paid, including individuals and other cooperative members.
He further explained that there was no thorough consideration of proprietors, especially for those who invested in large tracts of land.
The produce in the store, which was supplied to Akens and Kernels Ltd by over 3800 farmers, was sold, but the money was only distributed among farmers with delivery notes from the company.
However, the issue of farmers who invested in Akens and Kernels Ltd by providing money for the company to grow the crop on the land provided by the government remains unsolved.
{{Rwf27 billion in debts claimed by Chia Seeds farmers}}
Over 3,800 farmers are demanding payment from Akens and Kernels Ltd, with a total claim of over Rwf27 billion, which includes the capital they invested in Chia Seeds cultivation across more than 8,000 hectares of land.
The government provided over 1,000 hectares of land to Akens and Kernels Ltd, including 200 in Rulindo, 800 in Gisagara, 100 in Nyanza, and 50 in Kirehe district in Mahama, among other locations.
However, the farmers who invested in these lands were not able to recoup their investments, as the crop was not fully exploited.
Investments made by various individuals and entities in Akens and Kernels Ltd total more than Rwf17 billion, excluding profit. These investors were supposed to receive returns from the produce that was taken to the Dubai market, but to date, they have not received any payments.
Nsengiyumva has criticized the government’s handling of the situation, stating that instead of following up on the arrears, the Ministry of Local Government (MINALOC) sold the produce in store to pay farmers.
Nsengiyumva explained that the main problem relates to Akens and Kernels Ltd failing to cultivate as promised, despite the encouragement provided by various institutions in charge of agriculture and MINALOC.
He emphasized that not all individuals should be victims of the mismanagement of Akens and Kernels Ltd, and that ‘these institutions must ensure it is held accountable’.
{{Fear for dissolution without payment of debts}}
The future of Akens and Kernels Ltd remains uncertain as an audit revealed that the company is unaccountable for Rwf17 billion, including Rwf860 million from produce sold in Dubai. As a result, the Rwanda Development Board (RDB) filed a lawsuit to dissolve the company.
A court case is scheduled for 20th April 2023, IGIHE has learnt.
Nsengiyumva believes that Akens and Kernels Ltd should be held accountable for the money that farmers invested in the business. He fears that the dissolution of the company would leave the farmers with no place to ask for their property.
Nsengiyumva affirms that if the company goes bankrupt, the government should intervene and help the farmers since it accepted Chia Seeds as a cash crop.
Farmers are demanding that the government impound the tractors and other assets of Akens and Kernels Ltd to pay their debts.
This problem has had a significant impact on farmers, with some of them losing their properties and others suffering from mental health issues due to the financial losses.
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