Kenya Tea Development Agency (KTDA) has finally dispatched money to banks for the green leaf delivered by farmers in the month of January 2023.
Small-holder farmers affiliated to the agency should expect to start receiving their payments from tomorrow (February 9).
"Farmers will receive Sh2.47 billion being payment for 120 million kilogrammes of green leaf delivered to KTDA-managed factories,” KTDA said in a statement on Wednesday.
There has been a delay in the payment for January green leaf, blamed on a system hitch, which KTDA says has since been rectified.
The monthly green leaf payments are to be paid by the fifth day of the subsequent month under changes introduced last year, an improvement from the previous payment by 20th of the following month.
This disbursement follows Sh5.5 billion payment made last month for the mini-bonus and December 2022 green leaf deliveries.
"KTDA remains committed to the welfare of the farmers and endeavours to continually maintain and improve their interests,” it said.
Last year, the board approved an increase in monthly green leaf payments for farmers in KTDA regions five, six,and seven by 11 per cent and 17 percent respectively.
Farmers in KTDA region five comprising Kericho and Bomet counties now earn Sh20 per kilo of green leaf delivered, up from Sh18 previously.
Farmers in both region six (Kisii and Nyamira) and region seven (Nandi, Trans-Nzoia and Vihiga) now also earn Sh20 per kilo of green leaf up from Sh17.
The smallholder tea sub-sector accounts for about 60 per cent of Kenya’s tea production, four per cent of the GDP and over 15 per cent of the global tea exports, providing tea to many tea packers across the world.
The factories are located in rural areas, which create rural employment and rural infrastructure.
These farmers produce over one billion kilogrammes of green leaf annually, with last financial year’s production being 1.254 billion kilogrammes.
