Government Overturns KTDA Decision to Charge Farmers Ksh 3,400 for Tea Fertilizer

The Kenyan government has taken decisive action to reverse the Kenya Tea Development Agency’s (KTDA) decision to charge tea farmers Ksh 3,400 for a 50kg bag of fertilizer, which had sparked widespread discontent among smallholder farmers. The government’s intervention has reaffirmed its commitment to cushioning farmers against rising input costs, maintaining the subsidized price of Ksh 2,500 as outlined in the national agricultural subsidy program.

KTDA’s Initial Decision and its Implications

In a notice dated October 9, KTDA announced that farmers would be charged Ksh 3,400 for 50kg of fertilizer, a significant increase from the previous price of Ksh 2,500 under the government’s subsidy program. The increased cost, KTDA noted, would be deducted from farmers’ final bonus payments, which were due to be released the following week. This price hike was expected to apply to over 700,000 smallholder tea farmers who rely on the subsidized fertilizer for crop management and improving yields.

The price increase, however, was met with resistance from farmers who argued that it would erode their already slim margins. Given the importance of fertilizer in tea farming—where it directly impacts crop productivity and, by extension, farmers’ earnings—the decision to raise the price added pressure on tea growers who were already struggling with fluctuating global tea prices and rising production costs.

Government Intervention: Reaffirming the Subsidy

In response to the growing concerns, the government stepped in to protect farmers from the financial burden. Agriculture Principal Secretary Paul Ronoh issued a directive to KTDA, instructing the agency to revert to the government-subsidized price of Ksh 2,500 per 50kg bag of fertilizer. Ronoh’s directive came with a clear assurance that the government had availed sufficient funds to maintain the subsidy program, ensuring farmers continued access to affordable fertilizer.

“The Ministry of Agriculture, together with the National Treasury, is currently processing Ksh 2 billion to be availed to KTDA in the 2024/2025 financial year for the fertilizer subsidy program,” Ronoh stated. This announcement brought relief to many farmers who were concerned about the impending deduction of higher fertilizer costs from their bonus payments. The move also highlights the government’s broader commitment to supporting the agricultural sector and revitalizing the tea sub-sector through targeted subsidies.

Financing the Subsidy Program

The Ministry’s efforts to process Ksh 2 billion for the 2024/2025 fiscal year complement an earlier allocation of Ksh 1.4 billion, which was disbursed in July 2023. These funds form part of the government’s ongoing efforts to stabilize fertilizer prices and ensure that smallholder farmers, who form the backbone of Kenya’s tea industry, are not overwhelmed by rising input costs.

The National Treasury’s collaboration with the Ministry of Agriculture in mobilizing these funds demonstrates the strategic importance of tea farming to Kenya’s economy. Tea is one of the country’s leading export crops, contributing significantly to foreign exchange earnings and supporting the livelihoods of millions of farmers and their families across tea-growing regions.

KTDA’s Fertilizer Procurement

KTDA has played a crucial role in ensuring the availability of fertilizer for smallholder farmers by procuring large quantities of the input. This year, the agency ordered 97,000 metric tonnes of chemically compounded NPK 26:5:5 fertilizer, an increase from the 93,000 metric tonnes procured last year. Out of this, 47,390 metric tonnes have already arrived in Kenya and are being distributed to farmers across the tea-growing areas.

KTDA expects an additional shipment of 50,120 metric tonnes to arrive at the Mombasa port in the coming week. The distribution process will target more than 700,000 smallholder farmers, ensuring that they receive the fertilizer they need for the next planting season.

The agency’s proactive approach in securing fertilizer supplies demonstrates its awareness of the essential role that this input plays in tea farming. Fertilizer is key to enhancing crop yields and ensuring the sustainability of the tea sector, which faces multiple challenges, including climate change, volatile global prices, and competition from other tea-producing countries.

The Importance of Fertilizer Subsidies in Tea Farming

Tea farming is an integral part of Kenya’s agricultural sector, and fertilizer plays a critical role in ensuring high crop productivity. The proper application of fertilizer helps improve tea quality and boosts yields, making it a non-negotiable input for farmers aiming to remain competitive on the global stage.

In recent years, the government has increasingly recognized the importance of supporting smallholder farmers through subsidy programs. The tea fertilizer subsidy, in particular, has been essential in reducing the cost burden on farmers, allowing them to improve their farm output without being crippled by high input costs. This support is vital in maintaining Kenya’s position as one of the world’s leading tea producers and exporters.

The decision to uphold the Ksh 2,500 fertilizer price through subsidies also aligns with the government’s broader agricultural policy of enhancing food security and improving farmer livelihoods. By subsidizing the cost of essential farm inputs, the government ensures that farmers can access what they need to grow high-quality crops while remaining economically sustainable.

Farmers’ Reaction and Future Outlook

The government’s intervention has been welcomed by many tea farmers, who see it as a lifeline that will help them sustain their farms amidst rising input costs. “This is a huge relief for us,” said one tea farmer from Kericho. “The increase in fertilizer prices would have made it difficult for many of us to make a profit this year. We are grateful that the government has stepped in to help.”

Looking ahead, the government will need to maintain its focus on agricultural subsidies to ensure that farmers continue receiving the support they need. The subsidy program not only helps stabilize input costs but also serves as a buffer against external shocks, such as fluctuations in global tea prices and rising production costs driven by inflation.

Additionally, the Ministry of Agriculture and KTDA will need to work closely to streamline the distribution of subsidized fertilizers to avoid delays and inefficiencies. Ensuring that all farmers, especially those in remote areas, receive their fertilizer in a timely manner will be crucial to achieving the intended outcomes of the subsidy program.

Conclusion

The government’s swift intervention to overturn KTDA’s decision to raise fertilizer prices has underscored its commitment to supporting smallholder farmers and ensuring the sustainability of Kenya’s tea industry. By reinstating the subsidized price of Ksh 2,500 per 50kg bag, the government has not only alleviated the financial burden on farmers but also reinforced the importance of agricultural subsidies in enhancing crop productivity and ensuring food security.

As KTDA continues to distribute the procured fertilizer across tea-growing regions, the government will need to ensure that future subsidy programs are adequately funded and efficiently implemented. With over 700,000 tea farmers relying on the subsidy, the continued success of Kenya’s tea sector will depend on sustained collaboration between the government, KTDA, and the farmers themselves.