The government is set to pay the remaining Kes 1.6 billion owed to tea farmers under the Fertilizer Subsidy program allocated to Kes 3 billion in the 2023–24 financial year.
Speaking during the Kenya Tea Development Agency’s (KTDA) Directors’ Annual Conference in Nairobi, Agriculture Cabinet Secretary Mithika Linturi revealed that the government has only released Kes1.4 billion but is yet to pay farmers the remaining amount due to tough economic challenges.
“As government we said we will give them Kes 3 billion and we gave them Kes 1.4 billion last year.”
“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 said.
He emphasized the importance of the tea sector in the Kenyan economy and that the Ministry will prioritize the sub-sector.
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Tea is one of Kenya’s leading sources of American dollars, generating an average of more than Kes 130 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.”
Further, 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 Kes 34.71 in 2021 to Kes 50.18 and Kes 59.02 in 2022 and 2023, respectively in the last two years.
“As a result, the total payout to smallholder tea farmers increased from Kes 62.8 billion in 2022 to Kes 67.7 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.
