The Tanzanian government is under pressure to find alternative funding sources to settle outstanding cashew industry debts and end the Sh240 deduction from every kilogramme of cashews sold by farmers. This issue was raised in Parliament on October 29, 2026, during the Fifth Meeting of the 13th Parliament. Tandahimba MP Katani Katani challenged the Ministry of Agriculture to stop relying on farmers' contributions to meet financial obligations accumulated over previous seasons.
Katani questioned whether the government could mobilize funds from other sources to clear debts relating to the 2021/22 and 2022/23 seasons, allowing farmers to retain a larger share of their earnings. Deputy Minister for Agriculture David Silinde responded that the government was willing to explore alternative funding arrangements but would first consult stakeholders in the cashew industry. The government and the Cashewnut Board of Tanzania (CBT) regularly engage with MPs from cashew-producing regions to review the use of collected funds and consider proposals to improve farmers' welfare.
The debate raised questions about the management of money collected through the cashew export levy, particularly its use in settling historical debts. Lulindi MP Issa Mchungahela asked how much the board had collected from the export levy since its reinstatement and how the money had been spent. Silinde disclosed that the board collected Sh363.27 billion in the 2024/25 and 2025/26 financial years, comprising Sh183.58 billion in the first year and Sh179.69 billion in the second.
Silinde told Parliament that by June 2026, Sh349.31 billion had been spent on paying suppliers of agricultural inputs distributed to farmers under the subsidy programme between the 2022/23 and 2025/26 seasons. A further Sh13.37 billion was spent on development projects, while Sh342.33 million was used to settle claims by farmers who had not received payment for their cashew sales during the 2017/18 season. This was due to the liquidation of the former Covenant Bank.
Mchungahela questioned the use of money collected from the cashew industry to settle obligations linked to a collapsed bank, arguing that farmers deserved greater clarity on how their contributions benefited them. Silinde explained that the government had directed the board to settle the affected farmers' claims to ease the losses they suffered following the bank's liquidation.
The Sh240 deduction was among the mechanisms used to finance farmers' needs, including agricultural inputs. Silinde emphasized that the government was committed to finding alternative funding sources to support farmers. The cashew industry is a significant sector in Tanzania, and the government is working to improve the welfare of farmers and increase the country's cashew production.
The government is expected to consult with stakeholders in the cashew industry to determine the best approach to addressing the debt burden and finding alternative funding sources. This move aims to support farmers and improve the overall performance of the cashew sector in Tanzania.
Key points
- The Tanzanian government is considering alternative funding sources to settle outstanding cashew industry debts.
- The government collected Sh363.27 billion in cashew export levy in the 2024/25 and 2025/26 financial years.
- The Sh240 deduction from cashew sales is being reviewed as part of efforts to improve farmers' welfare.
