KTDA to Refund Fertilizer Suspense Payments to Tea Farmers by January 2025

In a bid to support smallholder tea farmers, the Kenya Tea Development Agency (KTDA) has announced that tea farmers affiliated with the organization will receive their fertilizer suspense refunds alongside the Green Leaf (GL) payment by January 5, 2025. This follows the agency’s commitment to ensuring that the interests of the farmers are at the forefront of its operations.

The announcement was made by the CEO of KTDA, who stated that 98,988 MT of fertilizer has been procured for the current year. The final batch of 8,000 MT will be distributed to farmers by the first week of December 2024. A reconciliation process will follow to determine the exact refund payable to each farmer.

A key part of this support package is the government subsidy that has helped reduce fertilizer costs for farmers. Initially, the price for a 50kg bag of NPK fertilizer was set at Ksh 3,400, after being procured through competitive bidding. However, in November 2024, the Government of Kenya provided a significant subsidy of Ksh 2 billion, effectively reducing the price to Ksh 2,500 per bag.

KTDA management expressed its gratitude to the government for this timely intervention, which has led to lower fertilizer costs and will ultimately translate into better payments for tea farmers. Enos Njeru, the National Chairman of KTDA, emphasized that this move is part of the organization’s ongoing efforts to ensure the empowerment and welfare of tea farmers.

“With this initiative, the interests of our farmers are placed at the center of the tea value chain. We are determined to continue making decisions that directly benefit the farmers and secure their livelihoods,” said Njeru.

The subsidy and refund package come at a crucial time for tea farmers, many of whom have been facing high production costs in recent years. By reducing fertilizer expenses, KTDA aims to improve farmer productivity and increase their returns, ultimately enabling them to enjoy the fruits of their labor and “smile all the way to the bank.”

Farmers affiliated with KTDA are expected to receive the refunds together with their GL payments in early January, marking a significant step in the agency’s ongoing efforts to support and uplift Kenya’s smallholder tea farmers.