NAIROBI, Kenya, Dec 7 – The government will pay the remaining Sh1.6 billion that is owed to tea farmers under the Fertilizer Subsidy program that was allocated Sh3 billion in the 2023–24 financial year.
Agriculture Cabinet Secretary Mithika Linturi said that the state has only released Sh1.4 billion but is yet to pay farmers the remaining amount due to the tough economic challenges.
“As government we said we will give them Sh3 billion and we gave them Sh1.4 billion last year,” the CS said today during the Kenya Tea Development Agency’s (KTDA) Directors’ Annual Conference held in Nairobi.
“We owe them some money but let us remain patient because the Kenya Kwanza government is committed to deliver on its promises to Kenyans,” he added.
Linturi stressed the importance of the industry in the Kenyan economy and that the Ministry will prioritize the sub-sector.
Tea is one of Kenya’s leading sources of American dollars, generating an average of over Sh130 billion annually in export earnings.
“The industry accounts for 4 percent of the Agriculture GDP. It supports the livelihood of over 750,000 farmers and approximately 6 million directly and indirectly,” Linturi said.
“Kenya is the 3rd leading producer of tea after China and India and the leading exporter of tea to over 77 countries globally.”
In the last two years, the CS agreed that most KTDA-managed factories have increased the price of green leaf paid to farmers by 45 percent and 70 percent, from Sh34.71 in 2021 to Sh50.18 and Sh59.02 in 2022 and 2023, respectively.
“As a result, the total payout to smallholder tea farmers increased from Sh62.8 billion in 2022 to Sh67.7 billion in 2023. This achievement is quite significant for the government’s agenda of increasing returns to farmers,” he said.
He also urged KTDA directors to continue supporting reforms that have been ongoing in the tea industry in order to enhance its competitiveness and increase returns to growers.
He, however, acknowledged that the industry is experiencing declining prices due to the effects of the Middle East and Russian-Ukraine crises, which have in turn affected the purchasing power in some of the international tea markets.
The KTDA Annual Directors Conference 2023 brought together over 400 directors, senior management, and stakeholders from the 71 KTDA-managed tea factories spread across 16 counties in the country.
