BOUNTIFUL HARVEST

KTDA releases Sh21.57 billion as second bonus to farmers

Farmers to expect the funds to reflect in their bank accounts by the end of this week.

In Summary

• Farmers have been asked to re-invest their net earnings in increasing farm production quality to make their business more sustainable.

• The second payment which is popularly known as a bonus has been released following the conclusion of meetings by factory directors from the 54 KTDA-managed factories. 

Farmers picking tea in Kangaita village
Farmers picking tea in Kangaita village
Image: FILE

Kenya Tea Development Agency Management Services Limited (KTDA-MS) has released Sh21.57 billion, which is the second payment to farmers for the financial year that ended on June 30, 2021.

Farmers have been asked to expect the funds to reflect in their bank accounts by the end of this week.

The second payment which is popularly known as a bonus has been released following the conclusion of meetings by factory directors from the 54 KTDA-managed factories that were held between September 20th and October 1 to review the audited 12-month accounts of their factories and declare the second payment rate.

KTDA Holdings Limited chairperson David Ichoho, said that Sh600 per 50kg bag of fertiliser will be reflected in the payment in a bid to pass on the Sh1 billion fertiliser subsidy by the government directly to the farmers.

Ichoho added that the Board and Management are working in ensuring that the farmers get optimal benefit from the tea business, urging farmers to re-invest their net earnings in increasing farm production quality to make their business more sustainable.

He also lauded President Uhuru Kenyatta for the support he and his administration have accorded smallholder tea farmers, adding that KTDA will continue working with the Government and other stakeholders in improving net earnings for the farmers

The agency has further said that KTDA-managed factories are already enjoying higher tea prices at the auction following the introduction of the minimum reserve price, which is expected to translate to higher earnings next year.

Early this month, Agriculture CS Peter Munya dismissed naysayers of tea reforms after farmers’ lamentations over declined tea bonuses.

Munya had urged farmers not to uproot their tea bushes over low bonuses. He accused cartels and some ousted KTDA officials of being behind the low 2020-2021 bonus.

“Do not be deceived by those telling you to uproot tea. The changes we are carrying out in the sector will enable farmers to earn more money from the crop. Next year’s bonus will be a boom.

"I wish farmers get their bonuses before August 2022. We are conducting a forensic audit to wind out cartels who have godfathers. They are applying delay tactics through court cases,” Munya said.

Edited by D Tarus