- The Ministry of Agriculture has requested Sh1 billion for fertiliser subsidy, which will reduce the cost of fertiliser by Sh600 from Sh3,073 to Sh2,473 per 50 Kg bag.
- Agriculture CS Peter Munya said the subsidy is currently being processed by the National Treasury.
Image: EUTYCAS MUCHIRI
The government will investigate the procurement of fertiliser for tea farmers affiliated to the Kenya Tea Development Authority and how the cost of Sh3,073 for a 50kg bag was reached.
Agriculture CS Peter Munya said the investigation by a multi-agency team will seek to find out at what cost the fertiliser was bought despite the Covid-19 pandemic in 2020.
The CS was speaking on Thursday during a media briefing on the status of the implementation of tea reforms.
Munya said KTDA has procured 86,288 metric tonnes of fertiliser on behalf of smallholder growers for application during the short rains season starting October.
He said local fertiliser suppliers are selling at Sh2,600 but the KTDA fertiliser is selling at Sh3,000 which is expensive for many farmers.
“There is a possibility that the former board exaggerated the cost of the fertiliser translating to the current price of Sh3,073 per bag. However, as the Ministry of Agriculture and KTDA board, we will institute investigations into how the procurement and cost apportioned to the quantity was arrived at,” Munya said.
He said the retail price for fertiliser for the current financial year has increased by 54 per cent from Sh1,996 in 2019 to Sh3,073 in 2021 per 50kg bag.
Munya said the increase has been attributed to international market dynamics such as rising cost of natural gas, fluctuations in foreign currency exchange rates and global logistical challenges occasioned by the Covid-19 pandemic.
“In order to cushion the farmers against the high cost of fertiliser, KTDA through my ministry has requested the government for fertiliser subsidy amounting to Sh1 billion, which will reduce the cost of fertiliser by Sh600 from Sh3,073 to Sh2,473 per 50kg bag.
He said the request for subsidy is currently being processed by the National Treasury.
He added that there will be more systems audits and in order to identify weaknesses in the internal control systems of KTDA, its subsidiary companies and smallholder tea factories, KTDA will engage EACC to conduct a systems audit on their operations.
“Recommendations of the audit will assist in sealing loopholes contributing to wastage and inefficiencies within the operations of the smallholder tea sub-sector,” he said, adding that this will reduce operational costs and enhance the returns to the tea growers.
“In order to establish any malpractices such as fraud or embezzlement of funds by previous boards of smallholder tea factories and KTDA, the eight newly elected board directors will undertake a forensic audit on the financial and operational performance of KTDA Holdings and its subsidiary companies and smallholder tea factories for the last 10 years. Those found culpable of any financial or other malpractices will be prosecuted,” Munya said.
-Edited by SKanyara