KTDA’s subsidiary slashes interest rate on loans for tea farmers

Nairobi, Wednesday, 1st December 2021 – Greenland Fedha Limited, the microfinance arm of KTDA Holdings, has reduced the interest rate on loans to smallholder tea farmers to 8 per cent, down from 21 per cent effective  December 1 2021. 

KTDA Holdings Chairman David Ichoho said the move is aimed at increasing access to affordable credit for smallholder farmers to enable them to meet their obligations.

Ichoho, while addressing journalists, said that for a long time, farmers had not been financially empowered due to challenges in accessing affordable credit.

“We are now glad that our farmers can now access loans through Greenland Fedha Limited at just 8 percent interest. The existing debt burden is a great threat to the empowerment of the farmers and, therefore, unsustainable. Today, we are happy to mark this transformative milestone that will significantly increase access to credit by our farmers,” he said.

Other initiatives instituted by KTDA include the increase in the initial monthly pay per kilo of green leaf from Shs 16 to Shs 21 and the setting up of a minimum reserve price of tea at the auction and the importation of 85,000 metric tonnes of fertilizer to smallholder farmers.

“We will continue working with partners including the Government of Kenya, financial institutions, and other stakeholders in the industry in making tea farming more sustainable,” he added.

KTDA further urged farmers to venture into other economic activities to increase income streams for their empowerment.

“Together with the KTDA Foundation, we have rolled out a comprehensive financial literacy programme to empower our farmers to manage and grow their income, not just from tea but from other ventures.