KTDA to make second payment to farmers

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Factory directors from the 54 Kenya Tea Development Agencies(KDTA)-managed factories will from 20th September 2021 hold meetings to review and approve the factories’ annual audited accounts for the 2020-21 financial year.

The 54 KDTA-managed factories shared that their directors from the 20th September will hold meetings to review and approve the annual audited accounts.

In addition, these meetings will be followed by KTDA to make second payment to farmers which will be communicated to farmers. The respective companies will handle their individual communication. Prior to the meetings, KDTA Acting group CEO, Wilson Muthaura requested patience from farmers as they waited on factory directors.

“As per law, directors will meet to discuss their respective factories and thereafter declarations on the bonus will be announced. We urge patience from farmers as we wait for communication from their respective factories.” He added.

The performance of the factory companies comes after a 9% drop in CTC tea prices at the Mombasa Tea Auction. Coming from an average of US$ 2.38 financial year (2019-2020) to US$ 2.18 in the 2020-2021 financial year.

During the financial year under review, farmers delivered 1.28 billion kilos of green leaf to factories. This is a 14% drop from the record production of 1.45 billion kgs in the previous year.
The downward trend in 2018 served as a continuation of the drop in these prices.  Moreover, high production over the years has seen supply outstrip demand and tea processers carrying forward unsold tea stocks.

Factories second payment rates

Factory companies pay different second payment rate per kilogram of tea delivered to the factory. This rate depends on the factory income for the year, costs of production and other related costs. Furthermore, the quality of leaf delivered determines the price.

To further reduce on ballooning energy costs, KTDA-managed factories are implementing energy efficiency changes. These have seen the amount of energy used to produce a kilo of tea. Factories in some regions are also developing small hydropower stations to produce cheaper and more stable power supply.

The newly inaugurated KTDA Holdings board also says it has spearheaded the supply of fertilizer to farmers. Additionally, it has negotiated a Kshs 1billion subsidy from the government to cushion farmers from the high input cost.

There is more about the process of KTDA to make second payment to farmers available HERE


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