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Sh10bn tea plan targets better earnings for smallholder farmers

The consignment is the first of 99,000 metric tonnes that will be distributed to tea-growing areas across the country before the rainy season.

By Maureen Kinyanjui
3 min read
Sh10bn tea plan targets better earnings for smallholder farmers

Tea farmers are set to benefit from a Sh10 billion government investment targeting the modernisation of smallholder factories, cheaper farm inputs, mechanisation and increased local processing as the State seeks to improve incomes from the crop.

Agriculture Principal Secretary Paul Ronoh said Sh4.5 billion had so far been released under the programme, with Sh1 billion allocated to upgrading tea factories and the remaining amount going towards fertiliser subsidies.

Ronoh spoke at the Port of Mombasa during the dispatch of 30,000 metric tonnes of fertiliser destined for farmers affiliated with the Kenya Tea Development Agency (KTDA).

The consignment is the first of 99,000 metric tonnes that will be distributed to tea-growing areas across the country before the rainy season.

The PS said the latest delivery had arrived earlier than last year’s supply, when farmers received fertiliser in December. He said the improved timing would allow growers to apply the input when it is needed and help support productivity.

Ronoh said the government was implementing several measures to address challenges in the tea industry, including improving factory efficiency, strengthening the marketing of tea and raising the returns received by smallholder growers.

He further assured KTDA that the remaining money under the government support programme would be made available, allowing the agency to maintain stable finances and continue running its operations efficiently.

The PS said recent tea auction results offered encouragement to farmers, noting that KTDA had managed to sell all its tea as prices improved following increased marketing efforts by the Tea Board of Kenya (TBK).

“The tea sector is on course to transform and contribute more to farmers’ livelihoods and the country’s economic growth,” Ronoh said.

Under the subsidy arrangement, farmers will buy fertiliser at Sh2,000 for a 50-kilogramme bag, the same rate provided through the national fertiliser subsidy programme.

Ronoh said KTDA would be expected to source the fertiliser through competitive international tenders to ensure the inputs meet quality requirements while farmers receive value for money.

He also commended the Tea Board of Kenya for strengthening enforcement across the industry.

The PS asked growers to protect the quality of Kenyan tea by harvesting mature leaves only, saying this would be important in securing stronger prices in domestic and overseas markets.

He also announced that a scientific tea testing centre had finished its pilot phase and was expected to begin full operations soon. The facility is intended to respond to long-running concerns surrounding tea quality testing and certification.

Farmers were advised to work with agricultural extension officers and KTDA officials for guidance on when and how to apply fertiliser to their tea bushes.

Beyond farm production, the government is seeking to increase the amount of tea value retained locally by promoting processing and packaging within Kenya.

Ronoh said tax incentives on packaging materials had been introduced to encourage investors and processors to package Kenyan tea locally instead of exporting bulk tea for packaging in other countries.

He said increased local packaging would also create employment opportunities while raising the value retained in Kenya from the tea industry.

KTDA chairman Enos Njeru said the 30,000 metric tonnes of fertiliser being shipped would produce about 1.9 million 50-kilogramme bags of NPK 26:5:5 for distribution to smallholder growers.

Njeru said the agency relies on international competitive bidding when purchasing fertiliser to ensure farmers get quality inputs at affordable prices.

The fertiliser will be moved by rail from Mombasa to Nairobi before being transported by road to tea factories in different growing zones, where farmers will collect their supplies.

Njeru said timely use of fertiliser was vital to keeping tea bushes healthy and ensuring continued production of high-quality green leaf.

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