Tea farmers in the country are smiling all the way to the bank after the Kenya Tea Development Agency released November pay for their produce.
KTDA chairman David Ichoho said the agency has released Sh2.58 billion to the farmers for 125 million kilos of green leaf delivered to KTDA factories last month.
Ichoho who spoke at Theta tea factory in Gatundu South during the factory's annual general meeting on Thursday, said the money has been released to farmers in the first week instead of the usual third week.
The chairman said the change in payments dates is the latest development in the reforms journey initiated by the new KTDA board that took over office in July to enhance service delivery to farmers.
"The board has introduced this new payment system to help farmers access cash from their tea deliveries early enough to meet their daily needs and monthly obligations," Ichoho said.
He said early payments will keep brokers at bay as cash-strained farmers who have been hawking tea will be getting their money on time.
"We are implementing reforms that will change the lives of our farmers," he said.
Ichoho said among the reforms introduced by the new board include the reserve price for tea from KTDA-managed factories.
He said the reserve price of $2.43 per kilo has seen tea prices at the Mombasa auction rise from $1.9 to a record $3.11.
"The reserve price was informed by the deteriorating market that had seen selling prices nearly slip below the cost of production. It's a reform we have been keen to implement and as a result the prices at the auction hit a multi-year high of $3.11 per kilo last week," the chairman said.
Other changes introduced by the board include: an increase in monthly pay to Sh20 per kilo for growers in regions five, six and seven, and Sh21 for regions one to four, the successful lobbying for a Sh1 billion fertiliser subsidy from the state and a reduction of interest rates charged by Greenland Fedha (KTDA’s microfinance institution) to eight per cent per annum to boost affordable credit access and reduce the burden of the loans for tea farmers.
Farmers who spoke during the meeting hailed the new KTDA management for expediting implementation of reforms that will improve their earnings.
Farmer James Mathenge said the improved tea prices will free most farmers from poverty and improve their living standards.
"With the improved prices, we will even be able to integrate our farming and start growing other crops like macadamia and avocado that will fetch us better income. We are grateful for the work being done by KTDA to improve our lives," Mathenge said.
Farmer Mary Njeri lauded the government for providing subsidised fertiliser to farmers saying they now expect high yields from their farms which will translate to increased income.
-Edited by SKanyara
