From right; KTDA Chief Executive Officer Wilson Muthaura, chairman David Ichoho, Agriculture CS Mithika Linturi and KTDA vice chairman Wesley Koech at Serena Hotel yesterday.
By Our Reporter
Worth Noting:
- Farmers can expect to receive payment into their accounts in the next few days – based on respective banks’ processes and timelines.
- Of the Sh5.5 billion, Sh 2.7 billion is payment with respect to mini bonuses for the factories whose directors passed resolutions to pay mini bonuses to their farmers.
- The balance of Sh2.8 billion will go towards paying farmers for the December green leaf delivered to factories.
- The Sh2.7 billion mini bonus payment represents 449 million kilos of green leaf delivered to KTDA-managed factories over the six-month period.
- During the same period, average tea prices for KTDA at the auction stood at KSh326 per kilogram of made tea compared to KSh306 over the same period in the 2020/2021 financial year.
Tea farmers from Mt Kenya region are set to receive a total of Sh1.9 billion, being payment for the green tea they delivered between July and December last year.
The farmers from 35 Kenya Tea Development Agency (KTDA) managed factories in the region will receive the money, popularly known as mini-bonus from Monday next week.
Farmers will receive different rates of between Sh5 and Sh10 per kilogram, depending on the Tea factory they are affiliated to.
Agriculture Cabinet Secretary Mithika Linturi and the KTDA directors alongside top management held a press briefing at Serena Hotel in Nairobi where the disclosure was made.
The CS who made the announcement said a tota of Sh5.5 billion was being released to the small holder Tea farmers across the country to assist them address their various financial needs.
He noted that the money to be wired to the farmers was not a loan from any institution but was from tea proceeds.
He noted that not all small scale tea farmers will be getting the mini-bonus as some have preferred to hold so as to receive the final payment once the crop-year ends in July.
Farmers can expect to receive payment into their accounts in the next few days – based on respective banks’ processes and timelines.
Of the Sh5.5 billion, Sh 2.7 billion is payment with respect to mini bonuses for the factories whose directors passed resolutions to pay mini bonuses to their farmers.
The balance of Sh2.8 billion will go towards paying farmers for the December green leaf delivered to factories.
The Sh2.7 billion mini bonus payment represents 449 million kilos of green leaf delivered to KTDA-managed factories over the six-month period.
During the same period, average tea prices for KTDA at the auction stood at KSh326 per kilogram of made tea compared to KSh306 over the same period in the 2020/2021 financial year.
On his part, KTDA Holdings Chairman, David Ichoho said, “We are pleased to announce that the payment for the December 2022 green leaf delivery by our farmers has been made today, together with the mini bonus for the period July to December, 2022. Farmers have been waiting for this payment and we have made it right before schools open, to enable our farmers meet their back to school obligations alongside other personal obligations.”
He added, “As part of the reforms, we promised our farmers that they will be receiving their pay by 5th of the month, a promise we have dutifully kept. We have delayed slightly this month to enable us compute the proper amounts to pay to farmers alongside this mini_bonus.”
“We wish to thank all stakeholders, particularly the Government of Kenya led by His Excellency the president, Dr William Ruto, the Deputy president Hon Rigathi Gachagua and the Cabinet Secretary for Agriculture, Hon. Mithika Linturi for the continued support in ensuring farmers get better returns for their tea,” he added.
KTDA operates a two-step payment model where farmers are paid monthly, and an additional interim payment (mini bonus) and a final payment (bonus) based on the performance of each factory.
This model allows farmers to spread their earning through the year to cater to their needs.
Early payment of farmers’ dues is part of reforms being instituted by the new KTDA Holdings Board, the introduction of the reserve price for teas from KTDA managed factories of USD2.43 per kilo of made tea.
Other changes introduced by the board include: an increase in monthly pay to Sh20 per kilo for growers in regions five, six and seven, and Sh21 for regions one to four, importation of fertilizer and the successful lobbying for a fertilizer subsidy from the State as well as 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.
Of the Sh1.9 billion that will be paid to Mt Kenya region farmers, those in Murang’a County will receive the highest amount at Sh671.5 million with their neighbour in Kiambu County receiving the least at Sh254.4 million.
Nyeri farmers are set to receive a total of Sh209 million, Kirinyaga Sh260 million, while those in Embu, Tharaka Nithi and Meru counties to get a total of Sh556 million.
In the region, farmers in Embu will get the highest pay per kilogram at Sh10 while those from Kirinyaga will receive the least at Sh5.
In Nyeri, farmers from Gathuthi and Gitugi will receive the highest at Sh8 per kilogram with those in Chinga and Iriaini getting Sh6 and those from Ragati Sh5.
In Murang’a, those from Njunu, Ikumbi, Gacharage, Makomboki, Nduti and Githambo will get Sh7, those from Kanyenya-ini, Gatunguru and Kiru will receive Sh6 with those affiliated to Ngere getting the highest at Sh10.
In Kiambu, all the factories are paying Sh6 per kilogram while in Meru, Githongo will receive Sh6 and those affiliated to Weru, Kionyo, Imenti, Kinoro, Michimikuru and Kiegoi getting Sh5 per kilogram.
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