KTDA Releases 2.7 Billion In Mini-Bonuses To Farmers

Kenya Tea Development Agency (KTDA) has disbursed 2.7 billion shillings in mini-bonuses to farmers as the agency steps to keep its promise of prompt payment to farmers.

KTDA chairman David Ichoho on Thursday said the agency has also released 2.8 billion shillings in farmers’ payments for the December green leaf delivered to factories, bringing the total disbursement to 5.5 billion shillings.

“We are pleased to announce that the payment for the December 2022 green leaf delivery by our farmers has been made this week, 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 to meet their back-to-school obligations alongside other personal obligations,” he said.

The payment, expected to reflect in the farmers’ bank accounts in the next few days, is part of the ongoing reforms in the tea sector seeking to benefit both the sector and the individual farmer.

The 2.7 billion shillings represent 449 million kilos of green leaf and will see each farmer earn between 5 shillings and 10 shillings as mini-bonus per kilo of green leaf delivered to factories for the six months ending December 31.

“As part of the reforms, we promised our farmers that they will receive their pay by the 5th of the month, a promise we have dutifully kept. We have delayed slightly this month to enable us to compute the proper amounts to pay to farmers,’’ added Ichoho.

Early payments to farmers are part of the reforms initiated by the ministry of agriculture to ensure increased production as well as ensuring farmers benefit from their hard work.

Some of the reforms creating the current balance in the sector include the setting of the reserve price which has facilitated the initial green leaf monthly payments to the smallholder tea grower from 17 shillings to between 20 and 21 shillings per kilogram.

The price stabilization framework has worked well in shielding tea growers from price fluctuations that have for a long time led to unsustainability in the industry.

Ichoho noted in the six months ending December 31, the average tea prices for KTDA at the auction stood at 326 shillings per kilogram of made tea compared to 306 shillings over the same period in the 2020/21 financial year.

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