There is understandable excitement in tea growing regions in Kenya after billions of shillings was released to farmers as payment for their produce. The Kenya Tea Development Agency has today 8th February 2023 dispatched money to banks for the green leaf delivered by farmers in the month of January 2023.
Farmers will start accessing the money from tomorrow, giving the much-needed lifeline for tea producers ahead of the planting season and in the thick for back-to-school expenditure.
Farmers will receive Ksh2.47 billion being payment for 120 million kilogrammes of green leaf delivered to KTDA-managed factories. KTDA said in a statement the payment was slightly delayed by a system hitch which has since been rectified.
This disbursement follows Ksh5.5 billion payment made last month for the mini-bonus and December 2022 green leaf deliveries. “KTDA remains committed to the welfare of the farmers and endeavors to continually maintain and improve their interests,” it said in a press statement.
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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.
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