18.9 C
Nairobi
Sunday, December 22, 2024
18.9 C
Nairobi
Sunday, December 22, 2024

Farmers to get Ksh3bn tea bonus payment

Agriculture Cabinet Secretary (CS) Peter Munya has warned small-scale tea factory directors holding farmers’ bonuses until December. Tea farmers are receiving bonuses through various Saccos.

He termed keeping farmers’ funds unhealthy for any institution as accounting books are typically closed in June in preparation for a new financial year. 

“Mini bonuses have already hit farmers’ accounts however we want all bonus payment settled by July 10. It is wrong for tea factory to continually hold payments because it does not incur any profitable interests to the farmer,” Munya said.

The CS said this year’s bonus is high because farmers’ produce had been bought at a reasonable price thanks to the government’s intervention in designing a minimum reserve price at the Mombasa tea auction.

Early last month, Kenya Tea Development Authority said a total of Sh3 billion would be paid to farmers in the form of mini-bonuses for the leaf sold between July 2021 to December 2021. The highest earners would receive Sh10 per kg. This increased from Sh5 per kg that the farmers got in 2020.

Munya also called on farmers to register their names at the county agricultural offices to easily access the subsidized fertilizers. The registration would help keep away brokers who buy the product and sell it at a higher price.

 “Farmers should register themselves to easily access the fertiliser. Government has started dispatching fertiliser readily available at the National Cereals and Produce Boards depots at Sh2,800 from Sh6,000,” Munya said.

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