KTDA announces new monthly payment model for farmers

Kenya Tea Development Agency (KTDA) Holdings board has announced changes on small-scale farmers’ monthly payments to enhance faster access to their cash.
The smallholder tea farmers affiliated to the agency will now receive payment for their green leaf deliveries in the first week of the following month unlike before when they were receiving the cash on the third week of the following month. David Ichoho (pictured), KTDA chairman said the change of the payment arrangement follows farmers’ requests for faster remittance.
“KTDA Holdings board has introduced this new payment system to help farmers access cash from their tea deliveries early enough to meet their daily needs and monthly obligations,” he said.
He added the payments for 125 million kilos of green leaf delivered to KTDA-managed factories in November 2021, totalling Sh2.58 billion, have already been dispatched to the banks. The change in payment dates is the latest development in the reforms journey initiated by the board that took over leadership at the agency in late June 2021 and has been keen to deliver maximum value to growers.
Salaries and rent
The change in payment regime is also aligned with other financial obligations which normally happen at the end of the month like salaries and rent.
The delay in payments has in the past prompted cash-strapped farmers to leaf hawking to meet their financial obligations. “With the new change we expect farmers will deliver all their produce to the factories,” he added.
Ichoho also noted the change is in line with the tea reforms adding that the board and management are listening and are responsive to farmers’ needs.
“We continue to push for real changes in the lives of tea farmers. Despite some resistance, we have continued to implement the reforms as mandated by our farmers,” he said.