KIAMBU,Kenya, Dec, 10 – Tea farmers nationwide have a reason to smile after the Kenya Tea Development Agency (KTDA) released Sh2.5 billion as part of the November pay.
Ordinarily, tea farmers have received payments for their produce on the third week of the following month.
125 million kilograms of green leaf have been delivered to KTDA in the month of November.
Farmers have in the past pleaded with the agency to make payments in good time citing several inconveniences.
“The change in payments dates is the latest development in the reforms journey initiated by the new KTDA board that took over office in July in a bid to enhance service delivery to farmers,” said KTDA Chairman David Ichoho.
Ichoho who spoke at Theta tea factory in Gatundu South during the factory’s annual general meeting on Thursday said that the early payments will keep brokers at bay as cash-strained farmers who have been hawking tea will be getting their money on time.
The new reforms now include the reserve price for tea from KTDA-managed factories.
The reserve price of USD 2.43 per kilo has seen tea prices at the Mombasa auction rise from USD 1.9 to a record USD 3.11.
“Other changes introduced by the board include an increase in monthly pay to Sh 20 per kilo for growers in regions five, six and seven, and Sh 21 for regions one to four; the successful lobbying for a Shh billion fertilizer subsidy from the State and a reduction of interest rates charged by Greenland Fedha (KTDA’s microfinance institution) to 8% per annum to boost affordable credit access and reduce the burden of the loans for tea farmers,” he said.
Farmers hailed KTDA’s reforms saying that they will improve the lives thousands nationwide.
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