2021 tea bonus falls by Ksh.6 billion to Ksh.21.6B
The Kenya Tea Development Agency (KTDA) has
declared Ksh.21.6 billion as the second payment to farmers for the financial
year ended on June 30, popularly reffered to as the bonus.
The final sum payable is however Ksh.6 billion
lower than the Ksh.27.6 billion paid last October which mirrors the continued treacherous
run for tea prices at the Mombasa action.
KTDA says farmers can expect the funds to reflect
in their bank accounts by the end of this week.
Tea prices have continued to take a battering at
the Mombasa auction largely as a factor of oversupply in the international
market.
For the new KTDA management, the lower pay out
will a slap on the face as it had hoped to beat last year returns to farmers on
reforms.
Even so, the management has affirmed greater
proceeds in October 2022 on new changes including largely, the setting of a
minimum reserve price of $2.43 (Ksh.269.73) per kilo for all KTDA sold teas at
the Mombasa auction.
Following the setting of the minimum price, tea
prices at the auction peaked at a high $3.07 (Ksh.340.77) per kilo in the
auction held on October 12 in contrast to $1.90 (Ksh.210.90) in the week
preceding the setting of the base price.
“The KTDA-managed factories are already enjoying
higher prices at the auction following the introduction of the minimum reserve
price. This is expected to transalate to higher earnings next year,” KTDA said
in a statement on Wednesday.
In line with recent declaration including the
setting aside of Ksh.1 billion in the upcoming Supplemenatary Budget to support
the tea fertilizer subsidy program, KTDA says a 50 kilo bag of ferterlizer will
sell at Ksh.600.
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