Tea farmers in the Rift Valley and Western Kenya will enjoy increased pay for green leaf deliveries, as reforms in the sector continue.
This is after the Kenya Tea Development Agency (Holdings) Limited Board, approved increased monthly green leaf payments for farmers in KTDA's regions five, six, and seven.
The prices will go up by between Sh2 and Sh3, in what KTDA says is a move to enhance farmers’ monthly earnings.
Farmers in KTDA region five, which covers factories in Kericho and Bomet counties will earn Sh 20 per kilo of green leaf delivered, up from Sh18 previously.
Farmers in both region six– factories in Kisii and Nyamira counties, and region seven– Nandi, Trans-Nzoia and Vihiga counties, will now earn Sh 20 per kilo of green leaf, up from Sh17 previously.
The pay increment is effective from July 1, 2021, KTDA said in a statement on Monday, coinciding with the beginning of KTDA’s new financial year.
The decision follows a similar move that was approved by factories in KTDA regions one to four, covering central and eastern regions, which resolved to increase their monthly green leaf payment to farmers from Sh16 per kilo to Sh21 starting January this year.
"The decision is in line with the organisation’s continued endeavour to enhance farmers’ earnings while taking into consideration the fluid socio-economic environment," KTDA Holdings acting CEO, Wilson Muthaura, said.
The increased green leaf buying price comes at a time the government has also moved to tame prices at the auction which have remained below the preferred 2-dollar mark for the better part of this year.
Yesterday, KTDA said prices have increased from an average $1.90 (Sh208.24 ) per kilo to $2.43 (Sh266.33) since the introduction of the minimum reserve price.
The increase in monthly green leaf payment to farmers will enhance their monthly earnings, with a strong dollar against the Kenya shilling expected further increase their bonus earnings this year.
