President William Ruto has promised to allocate Sh3.7 billion to improve tea factories and increase production in Gusii and Western parts of the Rift Valley. The announcement was made during a visit to Ogembo in the Bomachoge Chache constituency. Ruto's pledge comes as farmers in these areas have been complaining about low bonus payments. Some farmers in Gusii and Western Rift Valley receive as low as Sh11 per kilogram of tea, compared to up to Sh60 received by their counterparts in Eastern Rift Valley.

Ruto stated that the government has set aside Sh1.2 billion in the current financial year to upgrade tea factories. An additional Sh2.5 billion will be provided next year. These funds will be used to repair infrastructure, increase production, and reduce the disparity in bonus payments between farmers in Eastern and Western parts of the Rift Valley. The President noted that the tea sector has made progress in addressing challenges that affected sales, including delays in selling tea at the Mombasa auction.

The President revealed that the average price of tea has increased from Sh36 to Sh57 per kilogram. However, he acknowledged that farmers in Western Rift Valley still earn low incomes due to poor infrastructure and high production costs. Ruto promised to support factories in transitioning to solar energy to reduce electricity costs and increase the revenue that can be distributed to farmers.

Local leaders, including Kisii Governor Simba Arati, Women Representative Dorice Aburi, and Specially Appointed Member of Parliament Irene Nyakerario Mayaka, requested that Ruto ensure all farmers benefit from the government's policies. They emphasized the need for fairness in the distribution of resources. Last month, MPs from Kisii and Nyamira counties complained about low bonus payments, accusing the Kenya Tea Development Agency (KTDA) of discriminating against farmers in the region.

An investigation by the Parliamentary Agriculture Committee found that tea from Eastern Rift Valley was sold at an average of $2.95 per kilogram at the Mombasa auction in the 2024/25 financial year. In contrast, tea from Western Rift Valley was sold for $1.78 per kilogram. The bonus paid to farmers depends on the revenue generated by each factory after deducting operating costs and monthly payments.

The KTDA's bonus payment system is based on the weight of green tea leaves delivered to factories. Farmers in Gusii and Western Rift Valley have been calling for improved bonus payments. Ruto's pledge is expected to bring relief to farmers who have been struggling with low earnings. The President's visit to the region was seen as an opportunity to address the concerns of local farmers and residents.

The tea sector is a significant contributor to Kenya's economy, and efforts to improve production and earnings are expected to have a positive impact on farmers' livelihoods. Ruto's government has prioritized the development of the agricultural sector, including the tea industry. The allocation of Sh3.7 billion is part of a broader effort to enhance the competitiveness of Kenyan tea in the global market.

Key points

  • President Ruto pledges Sh3.7 billion to upgrade tea factories and increase production in Gusii and Western parts of the Rift Valley.
  • The government aims to reduce the disparity in bonus payments between farmers in Eastern and Western parts of the Rift Valley.
  • Farmers in Gusii and Western Rift Valley have been complaining about low bonus payments, with some receiving as low as Sh11 per kilogram of tea.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.