Tea farmers receive additional Sh2 billion subsidised fertiliser

The government has released an additional Sh2 billion for 96,988 metric tonnes of subsidized fertiliser for tea farmers in the 2024/2025 Financial Year.

The comes after a directive by the Kenya Tea Development Authority (KTDA) on deduction of fertiliser costs from farmers’ tea bonus payments, which the government has opposed.

Agriculture Principal Secretary Paul Ronoh said the incentive is expected to cushion farmers from the high cost of farm inputs.

"We have noted that KTDA was availed Sh1.4 billion by the government in July 2023 for the tea fertiliser subsidy programme in addition KTDA has imported 96,988 metric tonnes of fertiliser for 2024/2025 financial year for the short rain season which is being distributed to the farmers at the moment," Dr Ronoh said.

"The State Department of Agriculture together with the National Treasury is processing an additional Sh2 billion to be availed to KTDA in 2024/2025 financial year for tea farmers fertiliser subsidy programme," he added.

The PS in a letter dated October 11, 2024, asked KTDA  CEO Wilson Muthaura to ensure that the fertiliser is supplied to the tea farmers at government recommend price of Sh2,500 per 50kg.

Earlier there was outcry, from the tea farmers over the high cost of fertilisers  after KTDA announced that it was going to deduct Sh3,400 per 50k bag due to delayed government subsidy programme.

The KTDA had announced that the outstanding balance for fertiliser imported to the farmers this year will be deducted from the second payment (bonus) and the final cost will be Sh3,400 per 50kg.

In a letter dated October 9, 2024, addressed to KTDA factory unit managers, the agency instructed them to deduct the amount from tea farmers’ final bonus payments.

“The deductions will be based on the quantity of fertiliser each farmer applied for earlier this year,” reads the letter in part.

The deductions are part of KTDA's fertiliser credit scheme, which allows farmers to make installment payments on fertiliser costs over several months, easing the financial burden.

However, PS Ronoh ordered KTDA to supply fertilizer at the government-recommended price of Ksh 2,500 per 50kg bag.

This year, KTDA has procured 97,000 metric tonnes of chemically compounded NPK 26:5:5 fertilizer, an increase of 4,000 metric tonnes from the previous year.

As of now, 47,390 metric tonnes have already arrived and are being distributed to tea farmers across the country, targeting over 700,000 farmers.

Another vessel carrying 50,120 metric tonnes of fertilizer is expected at the Port of Mombasa next week.

The KTDA fertiliser credit scheme enables farmers to pay in instalments.

These payments are made over several months to ease the farmer’s burden.

The cost of 50kg bag of is determined by several factors including cost of natural gas (a key component in the manufacture of NPK chemically compounded fertilizer), exchange rates, global supply constraints, high crude oil costs and the cost of shipment among other factors.