This archive report was first published on 31 October 2019.
On October 31, 2019, Agriculture Cabinet Secretary Mwangi Kiunjuri announced plans to provide Sh1.6 billion in financing for small-scale tea farmers to diversify from black CTC tea to orthodox tea.
The funding, which will be provided over the next one year, aims to help cushion farmers from low prices in the international market. According to Kiunjuri, orthodox tea produced using the traditional method fetches almost double the price of CTC type.
As part of the plan, the Ministry of Agriculture will provide a funding model for smallholder tea factories to set up production units. The financing will come with a one-year moratorium to further cushion farmers from repaying immediately.
Speaking on a local TV show, Kiunjuri said: 'In a bid to help our tea farmers realise better earnings, I have written to both the Head of Public Service Joseph Kinyua as well as the Cabinet, requesting the government consider the option of extending Sh1.6 billion concessional loan for putting up orthodox tea production units over the next one year.'
