KTDA Increases Prices of Green Leaf by Up to Ksh 3

Limuru Tea is an outgrower for Unilever Tea Kenya and owns 282 acres of tea plantations in Limuru. UTKL started as Brooke Bond Kenya (BBK). The name was changed to Unilever Tea Kenya Limited (UTKL) in 2004. Currently, UTKL has a total landholding standing at 16 223 acres, has 20 tea estates and eight factories manufacturing an average of 32 million kgs of tea per year.

Tea Estate in Limuru I https://twitter.com/minna_kuu

The Kenya Tea Development Agency says it has increased monthly green leaf payments for farmers by up to three shillings aimed at enhancing their earnings.

The Agency is increasing the price in regions five, six, and seven by 11 per cent and 17 per cent respectively. The new prices are effective from 1st July 2021.

Farmers in region five covers factories in Kericho and Bomet counties will earn Ksh 20 per kilo of green leaf delivered up from Ksh 18 previously. 

Farmers in both region six – which covers factories in Kisii and Nyamira counties – and region seven – covering factories in Nandi, Trans-Nzoia and Vihiga counties – will now also earn Ksh 20 per kilo of green leaf, up from Ksh 17 previously.

“The move is in line with the commitment the new Board has undertaken to ensure that farmers are getting earnings that reflect their hard work, and which are responsive to their everyday social and economic needs,” said KTDA Holdings Acting CEO, Wilson Muthaura.

Fertilizer Application

On the other hand, the more than 650,000 tea farmers will start receiving subsidised fertiliser from the KTDA following the arrival of 65,000 metric tons of fertilizer at the Port of Mombasa.

The subsidised fertiliser is supplied through KTDA’s supply programme for farmers’ through a financing deal with Standard Chartered Bank. 

The amount of fertilizer that each farmer gets is based on the number of tea bushes they have. On average, one 50kg bag of fertilizer is applied on 700 bushes.

“The final cost of a 50kg bag of fertiliser will be determined once clearing and transport cost to respective tea factories across the country as well as marine and overland insurance costs have been factored in,” the agency said Tuesday.

In 2020, the agency suspended the importation of fertilizer for tea farmers due to the effects caused by the COVID-19 pandemic.