Sunday, Oct 17, 2021
HomeEconomyTea prices to improve next year on intended implementations

Tea prices to improve next year on intended implementations

Munya tells off CMA over coffee regulations

Tea farmers will start getting improved bonuses by next year once the new tea reforms are fully implemented, Agriculture Cabinet Secretary Peter Munya has said.

Addressing farmers at Mataara tea factory in Gatundu North Tuesday, CS Munya said there has been some slight improvement in tea bonuses this year after the implementation of some of the reforms.

He cited the recent monthly tea pay per kilogram which increased by Ksh.5 from Ksh.16 last year to Ksh.21 this year.

Bonus pay, however, reduced by an average of Ksh.2 per kilo this year in almost all the tea factories compared to last year causing uproar among tea farmers.

 “We know there was an issue with bonuses which is being addressed. However, we have to admit that there has been some slight improvement in the monthly tea pay. However, the full impact on pay will be felt by next year once we have fully implemented the reforms,” he said.

Munya said they are in the process of streamlining KTDA by making it leaner in size and more effective to manage so as to cut operation costs.

He said the rot at KTDA was deeply rooted and its cleaning needs time.

Also Read:

  1. Kenya to ferry tea to Mombasa via SGR
  2. Smallholder tea factories announce second payment of bonuses
  3. Limuru Tea Board Chair resigns, company names successor

This year, top KTDA directors were ousted as part of the reforms, with the government calling for their audit to establish their involvement in the rot in the tea sector.

“Most of them have since gone to court and filed several cases. Until then is when we can begin implementation of the reforms. We hope the cases will be determined in a months’ time to give us time to begin the implementation of the reforms, ” said Munya.

On the Ministry’s preparedness to help tea farmers this rainy season, the CS announced that KTDA has procured 86,288 metric tons of fertiliser on behalf of smallholder tea growers for application to their tea bushes.

He said the fertiliser will help improve the quality of their tea produce and make farmers get good tea grades able to fetch good prices in the international market. He said the fertiliser will be subdivided at Ksh.2, 3473 per 50kg bag, compared to Ksh.3, 073 retail prices.

 “Fertiliser prices were increased by 54% from Sh 1,996 in 2019 to Sh 3,073 in 2021 per 50Kg bag.  In order to cushion the farmers against the high cost of fertiliser, KTDA through the Ministry has requested the Government for fertiliser subsidy amounting toSh1 billion, which will reduce the cost of fertiliser by Sh 600 per 50Kg bag,” he said.

Additional information by KNA

FOLLOW US ON:
Uhuru responds to IC
Menengai oil refiner

Digging behind the headline to explore the world of business and human interest stories in a more independent, honest, and dignified perspective.

Rate This Article: