Govt Determined To Get Rid Of Cartels In Tea Sector – Gachagua

Deputy President Rigathi Gachagua with Kenya Tea Development Agency (KTDA) directors at his office yesterday
Deputy President Rigathi Gachagua taking notes during his meeting with KTDA directors yesterday

By C N

Worth Noting:

  • “We have no personal interest in the sector other than the interest of the local farmers. The situation we have now is not pleasant. It is a vicious cycle of poor returns for our tea farmers. The tea farms make beautiful scenery across the country but the owners remain poor,” said the DP.
  • President William Ruto has tasked the DP with spearheading the reforms in the tea, coffee, and milk sectors and has expressed full trust in his ability to reform them.
  • Already the government has rolled out a fertilizer subsidy programme that has seen farmers buy the input at Sh3,500 down from Sh6,000.
KTDA board member representing Nyeri (Zone IV) Michael Kamau Ngatia making his contribution during yesterday’s meeting

The government has promised to work with the tea sector stakeholders to clear the industry off cartels in a bid to increase earnings for farmers.

Speaking during a meeting with Kenya Tea Development Agency (KTDA) directors, Deputy President Rigathi Gachagua said the government will not relent on its push to streamline the sector in a bid to make it more profitable to farmers.

The DP hosted the Board of Directors led by Chairman David Muni Ichoho at his office in Harambee Annex promising the administration’s readiness to work with them.

“We are concerned about the capture of the sector by various forces which are working to the disadvantage of the farmers. We want to free the sector from these forces,” the DP said.

He said the administration’s sole interest was on how to improve the farmers’ fortunes so that farming does not remain a vicious cycle of poor returns and endless pain.

“We have no personal interest in the sector other than the interest of the local farmers. The situation we have now is not pleasant. It is a vicious cycle of poor returns for our tea farmers. The tea farms make beautiful scenery across the country but the owners remain poor,” said the DP.

KTDA Chief Executive Officer Wilson Muthaura (right) making his contribution. Next to him is Simeon Rugutt, the KTDA Holdings, Group Finance & Strategy Director.

President William Ruto has tasked the DP with spearheading the reforms in the tea, coffee, and milk sectors and has expressed full trust in his ability to reform them.

Already the government has rolled out a fertilizer subsidy programme that has seen farmers buy the input at Sh3,500 down from Sh6,000.

This is part of the administration’s plan to ease the pain of farmers with the main objective to reduce the cost of food.

“Our farmers have been fairly disadvantaged. We want to lessen the burden for them. We have already subsidized fertilizers. We want them to reap good yields without overspending on their farms,” the DP stated.

The DP said KTDA management was now stable and they would work with the directors presently in office.

He challenged the directors to work with the government in its bid to streamline the sector.

“We recognize you as the legitimate office bearers and we want to work with you because the same people you are serving are the same who elected us. We want farmers to increase their earnings and live better lives,” he noted.

He said he will constitute a small team of industry representatives to lead the reforms in the tea sector.

The DP also promised to look at the decisions made by the previous board that were to the detriment of the farmers’ earnings.

KTDA Holdings chairman David Muni Ichoho making his contributions

Last week, KTDA disbursed a Sh5.5 billion payment to farmers for the December green leaf deliveries, inclusive of mini-bonuses for the half year ending December 31, 2022.

The farmers were paid between Sh5-10 as mini bonus per kilo of green leaf delivered to their factories for the six months up to December 31, 2022.

After the meeting, the board members led by the chairman thanked the Kenya Kwanza administration for its commitment to look at the plight of tea farmers as well as those in other sectors.

 

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