This archive report was first published on 27 October 2021.
Kenya Tea Development Agency Management Services Limited (KTDA-MS) has released a Sh 22bn bonus to tea farmers, amounting to Shs 21.57 billion, following a meeting by factory directors from the 54 KTDA-managed factories.
According to a statement by KTDA, the funds will be reflected in farmers' bank accounts by the end of this week.
The payment was released after a ten-day meeting by factory directors, which concluded on September 20, 2021. The meeting's agenda included reviewing the audited 12-month accounts of their factories and declaring the second payment rate.
KTDA Holdings Limited Chairman, David Ichoho, said that Sh600 per 50 kg bag of fertilizer will be reflected in the payment in a bid to pass on the Shs 1 billion fertilizer subsidy, allocated by President Uhuru Kenyatta during the Mashujaa Day celebrations.
President Kenyatta directed the National Treasury to allocate Shs 1 billion towards fertilizer subsidy for farmers, which will benefit KTDA-managed factories.
KTDA Chairman, David Ichoho, urged farmers to re-invest their net earnings in increasing farm production quality to make their business more sustainable.
“KTDA will continue working with the Government and other stakeholders in improving net earnings for the farmers,” Ichoho said.
The KTDA-managed factories are already enjoying higher tea prices at the auction following the introduction of the minimum reserve price, which is expected to translate to higher earnings next year.
