The Kenya Tea Development Agency has refuted claims that tea factories have borrowed money to pay farmers their bonus.
This is after reports appeared on social media claiming that KTDA factories have borrowed to pay farmers their second payment.
KTDA chairman David Ichoho told the Star on Wednesday that this information is not factual as funds for the payments are derived mainly from the sales of tea.
He said this year tea farmers will start receiving their second payment (bonus) amounting to Sh37.11 billion from Thursday this week.
Ichoho said the total annual payment of the first and second payments (mini and main bonus) for this financial year was Sh63 billion.
He further said Sh26 billion has already been paid to farmers as the initial payment (mini bonus), which is paid after six months and this year it was done in April.
Ichoho said the remaining Sh37.11 billion is what will be paid to farmers as main bonus, and the money will be disbursed from Thursday.
He said the Sh63 billion annual payment is an increase of Sh19 billion from the July 2021 to June 2022 financial year payment of Sh44 billion.
In 2020, the payment was Sh51.94 billion while in 2019 it was Sh46.45 billion and Sh62.36 billion in 2018.
This year’s high earnings comes with increased average payment per kilo of green leaf which averaged Sh50.18 compared to Sh34.71 last year.
KTDA tea grower’s payment data shows that farmers in Kiambu, Muranga, Nyeri, Kirinyaga, Embu and Meru earned more per kilo compared to their peers in Kericho, Bomet, Kisii, Nyamira, Vihiga, Kakamega and Nandi.
Farmers in Gitugi factory in Murang’a, Rukuriri (Kirinyaga/Embu) and Imenti factory in Meru will get the highest pay of Sh62 per kilo. In Western and Nandi, farmers are getting a lower pay of an average Sh40 per kilo.
“Farmers will receive their second payment at their respective pay points starting this week for the financial year ending June 30, 2022. This is courtesy of the tea reforms agenda as previously, farmers would receive the pay in October,” the chairman said.
Ichoho said they have requested the government to provide subsidised fertiliser for tea farmers.
“26 KTDA directors from the 71 KTDA managed factories met with President Uhuru Kenyatta on Saturday on the tea reforms update. The directors also requested for Sh3 billion for subsidised fertiliser for the tea farmers,” he said.
(edited by Amol Awuor)
