By Francis Mwema, January 16, 2023, The Kenya Tea Development Agency (KTDA), has released Ksh.5.5 billion bonus payment, for the half year ended December 2022, to smallholder farmers affiliated to its factories.
Following the disbursement, farmers should expect the payment into their accounts in the next few days based on respective banks processes and timelines.
From the Ksh.5.5 billion, Ksh. 2.7 billion represents payment with respect to mini bonuses for the factories, whose directors passed resolutions to pay mini bonuses to their farmers; the remaining Ksh.2.8 billion will go towards paying farmers for the December green leaf delivered to factories.
Farmers will get between Ksh.5 and Ksh.10 five shillings mini bonuses for every kilo of green leaf delivered during the period.
“We are pleased to announce the payment for the December 2022 green leaf delivery by our farmers has been made this week, together with mini bonus for the period July to December 2022 . farmers have been have been waiting for this payment and we have it right before schools open to enable our farmers meet their back to schools obligations alongside other personal obligations “ said KTDA chairman David Ichocho.
“As part of the reforms, we promised our farmers that they will receive their pay by 5th of the month, a promise we have dutifully kept. We have delayed slightly this month to enable us compute the proper amounts to pay to farmers,” Added Mr Ichocho.
“We need to reduce the cost of living at the moment. It was necessary for the Board to consider making an interim payment to farmers to assist them in this first quarter and today KTDA has heeded that request,” said Agriculture Cabinet secretary Mithika Linturi.
“This declaration will go a long way in supporting the farmers. In 2022, the government gave a subsidy for fertilizer, it is on the back of that that our tea production has increased,” said CS Linturi.
Funds to cater for these payments have been generated through the sale of tea over the period under consideration.
KTDA operates a two-step payment model where farmers are paid monthly, and an additional interim payment (mini bonus) and a final payment (bonus) based on the performance of each factory. This model allows farmers to spread their earning through the year to cater for their needs.
Early payment of farmers’ dues is part of reforms being instituted by the KTDA Holdings Board, the introduction of the reserve price for teas from KTDA-managed factories of $2.43 per kilo of made tea.
