Government To Pump Ksh 20 Billion Into Tea

By Natasha Nthenya

The value of tea export has remained the same since the decline from 138.6 metric tonnes to 124.5 thousand metric tonnes in the last 12 months. Of today 8^th March 2022, the current price of black tea is approximately 254 shillings per kilo.

Relief for Kenyan tea Farmers as the Ministry of Agriculture is planning to set a 19.5 billion shillings fund to benefit farmers after the price of the commodity dropped almost weekly from the start of this year. This is according to the tea prices stabilization framework report.

During the launch of the report, the Agriculture Cabinet secretary Peter Munyai said that the establishment of the fund is part of key findings called to attention to stabilize the Kenyan tea sector by Former Planning PS Irungu Nyakera.

Munya also said that the tea fund will be operationalized by the Tea Board of Kenya and will be operationalized starting the 202223 financial years and that the implementation of the fund will be addressing the issue of low earning tea farmers in Kenya.

“The Fund shall consist of monies appropriated by the National Assembly, tea levy, a source approved by the Board and through grants and donations made to the Board. The fund shall be administered in accordance with the Tea Price Stabilization Fund Regulations, 2021,”  Munya said.

Munya also added that they will earn 800 billion shillings from the Tea Levy which will be utilized in income and stabilization for tea growers in Kenya.

“The funds will be invested in appropriate instruments with an anticipated return of investments of approximately Sh400 million,” Munya added.

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