Kenyan smallholder tea farmers have received a major boost after the Kenya Tea Development Agency (KTDA) disbursed KES 3 billion as payment for the December 2021 green leaf deliveries to their respective factories.
The payment reflects 137.3 million kilos of green leaf delivered to KTDA-managed factories in December 2021, a significant increase from the KES 2.58 billion paid in November 2021 for 123.8 million kilos of green leaf.
According to KTDA CEO Wilson Muthaura, the payment follows the agency's decision to change the payment cycle for its farmers to the first week of the following month, from the third week, allowing for faster access to payment.
“We are pleased to announce that the payment for the December 2021 green leaf delivery by our farmers has been made this week in line with the payment schedule change we introduced last month. Farmers can expect to be receiving their monthly pay promptly within the first week of the following month, in line with the reforms that we have put in place,” said Muthaura.
The change in payment cycle is part of reforms being instituted by the new KTDA Holdings Board, which also includes the introduction of a reserve price for teas from KTDA-managed factories of USD2.43 per kilo of made tea in July last year.
The reforms have seen a significant increase in prices of KTDA teas at the auction, rallying from USD1.9 before the introduction of the reserve price to an average of USD 2.92 at the last auction.
