Murang’a: KTDA directors from tea-growing counties in the East of the Rift Valley have rejected statements made by Agriculture Principal Secretary Dr. Kiprono Rono concerning the payment of tea bonuses.
According to Kenya News Agency, the directors, who gathered in Murang’a, expressed concern that PS Rono’s claims-that bonus payments from factories in the West of the Rift Valley were added to those in the East, resulting in higher payouts-could upset tea farmers.
The directors emphasized that the bonuses for farmers associated with KTDA factories in Meru, Murang’a, Kiambu, Nyeri, Embu, and Kirinyaga are higher due to the quality of tea they produce. They argued that while the tea factories in the West of the Rift Valley focus primarily on quantity, those in the East adhere to guidelines ensuring the production of high-quality green leaf.
Gatundu South MP Gabriel Kagombe, along with directors John Mithamo and Enos Njeru, noted that Rono’s comments might create a rift between farmers in the East and West of the Rift regarding this year’s low bonus payments. Kagombe highlighted the cooperative relationship between factories in both regions, mentioning their engagement in inter-factory borrowing. He revealed that as of September 30, factories in the West owe those in the East Sh14.7 billion, whereas those in the East owe Sh422 million to the West.
Kagombe also mentioned that the inter-factory borrowing system was recently replaced by a Sh21 billion fund at Kenya Commercial Bank, with KTDA as the guarantor. He urged directors in the West to encourage farmers to produce high-quality tea for better financial returns.
The directors dismissed claims that hydro power stations in their zones were funded through deductions from factories in the West. They stated that factories in the East raised their own funds to establish these stations to reduce tea processing costs. Enos Njeru urged the government to reduce the numerous taxes imposed on tea and called on President William Ruto to meet with tea directors to address the issue of tea hawking in the West.
Njeru also emphasized the need for unity among tea farmers and rejected any attempts to create discord between factories in the East and West of the Rift. The directors demanded the reinstatement of the Rainforest Alliance certification, which had previously helped their produce achieve better market prices. Gerald Ngumba clarified that farmers were only requesting a reduction in certification fees, not the removal of certification from the tea sector.