This archive report was first published on 2 December 2021.
Nairobi, Kenya - On December 1, 2021, KTDA Holdings' subsidiary, Greenland Fedha Limited, made a significant move by reducing the interest rate on loans to smallholder tea farmers to 8 percent, down from 21 percent.
According to KTDA Holdings Chairman David Ichoho, the reduction in interest rate is aimed at increasing access to affordable credit for smallholder farmers, enabling them to meet their obligations.
Addressing journalists, Ichoho noted 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," Ichoho said. "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 added.
As part of KTDA's initiatives, the company has also increased the initial monthly pay per kilo of green leaf from Shs 16 to Shs 21 and set up a minimum reserve price of tea at the auction. Additionally, KTDA has imported 85,000 metric tonnes of fertilizer to smallholder farmers.
