KTDA disburses Sh3 billion as December payment to farmers

NAIROBI, Kenya, Jan 7 – The Kenya Tea Development Agency (KTDA) has disbursed Shs 3 billion as payment to its smallholder tea farmers for December 2021, an increase from the Shs 2.58 billion that was paid for November 2021 deliveries.

The payment was made on the first week of the month following KTDA’s decision to change the payment schedule which usually sees them receive monies on the third week of the month.

The Shs 3 billion payment was made in exchange for 137.3 million kilos of green leaf delivered to KTDA-managed factories.

KTDA Holdings CEO, Wilson Muthaura noted that the new schedule will translate to faster access of payment by the farmers and boost their financial empowerment.

“We are pleased to announce that the payment for the December 2021 green leaf delivery by our farmers has been made this week in line with the payment schedule change we introduced last month,” he said.

He acknowledged that the delay in payments previously saw cash-strapped farmers sometimes resort to leaf hawking to unlock earlier access to money.

“KTDA Holdings 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,” KTDA Holdings chairman David Ichoho said previously.

In July, KTDA introduced a minimum reserve price of Sh268 (USD2.43) per kilo of processed tea in a move aimed at cushioning smallholder farmers who were affected by the deteriorating market that had seen selling prices nearly slip below the cost of production.

Since then, the prices of KTDA teas at the auction have rallied from USD1.9 – before the introduction of the reserve price – to average USD 2.92 at the last auction.