The Kenya Tea Development Agency (KTDA) instituted a number of changes at the end of last year, for example, payments of farmers moved from the third week of the month to the first. This change was created as farmers struggled with the third week payments and how it delayed them from catering to their responsibilities.
As of this week, tea farmers are receiving their payments from the Ksh3 billion disbursed by the KTDA for the December 2021 green leaf deliveries to respective factories. A number of farmers have already been paid depending on their banks and their respective processes.
The Ksh3 billion is a reflection of 137.3million Kgs of green leaf delivered to the respective KTDA factories in December 2021. Furthermore, the entire community is thrilled as the amount has gone p from the previous month that recorded Ksh2.58 billion as payment.
CEO of the KTDA Holdings Wilson Muthura said; “We are pleased to announce that the payment for the December 2021 green leaf delivery by our farmers has been made this week. This remains 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.”
This news was welcomed by farmers who had been complaining of the previous payment plan. Other changes introduced by the board include: an increase in monthly pay to Ksh20 per kilo for growers in regions five, six and seven, and Ksh21 for regions one to four. Additionally, the successful lobbying for a Ksh1 billion fertilizer subsidy from the State. Moreover, a request for a reduction of interest rates charged by Greenland Fedha (KTDA’s microfinance institution) to 8% per annum to allow affordable credit.