It is going to cost more to put tea on the table after the price of a crucial input increased over Christmas. In a development that is expected to trickle down to consumer prices, the boards of Gatunguru, Kiru, and Kanyenyaini Tea factories in Murang’a County have resolved to increase the prices of green leaf from Ksh21 to Ksh25 per kilo to cushion farmers from the prevailing high cost of living.
Zone Three Board Member Chege Kirundi has hailed the move, saying the previous price was lower compared with the increased cost of living, which has left the majority of smallholder farmers in financial straights. An increase in tea prices will hit households budgets already stretched by a spike in the cost of sugar, the other key ingredient is tea, a popular breakfast beverage known popularly as chai.
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Speaking in Murang’a, he said the new price will reflect during payments for the month of December production. “Boards of the three factories have resolved to raise the price of green leaf considering the financial challenges our farmers are experiencing,” said Mr Chege, who is also chairman of Kiru Tea Factory.
Mr Chege further observed that the increase in price will stop farmers from hawking their green leaf to private factories, saying the move has occasioned the KTDA factories to operate below capacity.
“Hawking of green has affected the operations of our factories. We hope the increased payment will stop this trend, as our farmers will get increased returns,” he added.
The chairman said farmers should get their payment package without further delay, so they are not forced to source expensive credit facilities. “As we implement the reform agenda, the farmers are duty-bound to receive their payment as soon as possible after sale,” said the KTDA Director.
On his part, Gatunguru Tea Factory Chairman Mwangi Kaguma said the resolution was entered as part of the reforms the tea sector is implementing.
“We are ready to ensure the interests of the growers are addressed to bar them from selling their produce to the hawkers who have flooded areas,” said Kaguma.
However, on their part, the Gathambo Tea Factory board wants the proposed increment of Ksh4 per kilo channelled towards the end-of-year bonus. (KNA)
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