The government has released Sh3.5 billion to refurbish and modernise 19 tea factories owned by small scale farmers to meet the internationals standards.
The funds have been disbursed to the Kenya Tea Development Agency (KTDA) affiliated factories to also enable them do value addition on tea for better prices at the tea auction cantre in Mombasa.
“As the caucus of members of Parliament representing tea growers, we lobbied for Sh3.5 billion for modernisation of old factories,” Kericho Senator Aaron Cheruiyot
He said the funds would ensure the factories replace old lines as well as install machines that can produce special teas like orthodox and other premium brands.
“I urge the ministry of agriculture to quickly disburse these funds to the identified factories. The factories terribly need this intervention to allow them compete and return value to the farmers,” Cheruiyot said.
Agriculture Principal Secretary Kiprono Rono said the government prioritised farmers welfare even as he issued a stern warning to KTDA Board over corruption and misappropriations of funds meant for factories.
Rono said the state intervention has seen farmers monthly payment rise to Sh26 per kg up from Sh16 the previous year.
The initiative is part of broader tea sector reforms that also include reducing taxes on tea and waiving levies on packaging materials to support value addition and increase earnings to farmers
According to the Kenya Tea Industry Performance Report 2024, the country’s total earnings from tea stood at Sh215.21 billion—an increase of nine per cent from Sh196.97 billion in 2023.
The report indicated that Sh181.69 billion was earned from exports, Sh18 billion from local sales and Sh15.52 billion from committee stocks.
Rono spoke at Olenguruoni Tea factory when he issued a corporation certificate to the factory to enable it autonomously operate as a factory on its own.
Meanwhile, Senator Cheruiyot wants KTDA management probed over Sh1 billion power project for tea farmers in Kericho and Bomet that stalled two years ago.
“I have personally engaged the leadership of KTDA on several occasions to seek answers on behalf of my constituents on several occasions. There has never been a satisfactory explanation,” he said
Cheruiyot, who is also the Senate majority leader said farmers from the two factories continue to struggle with unstable power supply, thus affecting the quality of made tea and pay premium shilling for the same.
“In this regard, I have now written to the EACC and DPP, in pursuit of public interest to help unravel this mystery and at the very least recover the monies or get the projects completed as envisioned,” the Senator said.
The legislator said Setet hydro power plant along Chemosit river and Kipsonoi Hydro power project along Kipsonoi river were mooted to address the challenge of unreliable and expensive power from the national grid.
“The extra power was to be sold to Kenya Power and increase earnings to the farmers. Humble estimates place the cumulative value add earnings of this thought at Sh7 per Kilo,” he said.
