• Kenya Tea Development Agency has signed Sh3.5 billion financing deal with Standard Chartered Bank Kenya Limited for the purchase of 95,000 metric tonnes of fertilizer.
• The fertiliser will be distributed to over 650,000 farmers who form shareholders of the 69 factories that KTDA manages.
Kenya Tea Development Agency has signed a Sh3.5 billion financing deal with Standard Chartered Bank Kenya for the purchase of 95,000 metric tonnes of fertiliser.
The fertiliser will be distributed to over 650,000 farmers who form shareholders of the 69 KTDA managed factories .
KTDA Group chief executive Lerionka Tiampati said the move will help farmers access affordable fertilizer that will go towards improving the quality and yield of their tea.
“The partnership with Standard Chartered Bank fits well with our long-term strategic objective to work towards providing smallholder tea farmers with a wide range of cost-effective solutions for their everyday farming requirements,” Timpati said.
He said KTDA is leveraging on economies of scale afforded to it by its size to obtain the most competitively priced fertiliser in an international open tender.
The fertiliser is set to arrive in July and August for subsequent distribution to farmers for their use at the onset of the short rains.
Last year, KTDA procured and distributed fertiliser through a similar arrangement, for farmers at Sh1,774 per 50kg bag against the prevailing market of Sh2,700.
Farmers will start receiving the fertiliser from the end of July, with the quantity of fertiliser a farmer receives depending on the number of tea bushes owned.
On average, a 50kg bag of fertiliser is applied to 700 bushes. The fertiliser requirement is usually determined in November and December ahead of procurement in the following year.
“This financing is in line with supporting sustainability in the tea sector and providing bespoke solutions to all our clients,” Standard Chartered Bank chief executive Kariuki Ngari said.