Small-scale tea farmers affiliated with the Kenya Tea Development Agency (KTDA) are set to receive fertilizer refunds earlier than expected, with the payments now scheduled for December 2024. This is a welcome change for the farmers, who were initially told they would have to wait until January 2025 for the reimbursement of deductions made to cover fertilizer costs.
On Thursday, KTDA issued a statement announcing the shift in the payment schedule. The refunds, which were originally slated for disbursement by January 5, 2025, will now be made alongside the November Green Leaf (GL) payment, which is due in December 2024. This update comes as a relief to farmers who have been patiently waiting for their refunds after the deductions were made to cover fertilizer expenses for the current planting season.
In the official communication, KTDA noted that the distribution of pending fertilizer had been expedited, prompting the adjustment to the refund schedule. The agency further assured farmers that reconciliation for the fertilizer bags issued to each farmer was ongoing, and their accounts would be regularized in due course. This means that farmers can expect the refunds without having to wait until January, providing much-needed financial relief during the busy harvest season.
The announcement has been met with approval, as it ensures that farmers will not face further delays in receiving their money. The fertilizer costs, which have been a significant burden on small-scale tea growers, will now be refunded much sooner, allowing them to better manage their cash flow and invest in other aspects of their tea production.
KTDA also provided an update on the fertilizer distribution process. The agency revealed that it had procured a total of 96,988 metric tons of fertilizer for the year. The final batch, consisting of 8,000 metric tons, is expected to be distributed to farmers by the first week of December 2024. This marks a significant effort by KTDA to ensure that all farmers receive the necessary inputs in time for the current growing season.
The fertilizer, specifically the NPK chemically compounded variety, has been purchased at a cost of Sh3,400 per 50kg bag through competitive bidding. However, the government stepped in with a Sh2 billion subsidy in November 2024, which reduced the price to Sh2,500 per bag. This subsidy has been crucial in alleviating the financial strain on farmers, making the cost of fertilizer more affordable during a time when global supply constraints and rising costs of raw materials have affected prices worldwide.
Agriculture Principal Secretary, Paul Ronoh, confirmed that the government’s fertilizer subsidy had been released, helping to ease the financial burden on tea farmers. “We have released Sh2 billion to subsidize the cost of fertilizer, and that deductions made by the organization should be paid back to farmers by December 5, 2023,” Ronoh stated in a November update. This subsidy is a key element in ensuring that small-scale tea farmers can continue to access the essential inputs needed for their crops without breaking the bank.
The price of fertilizer is influenced by several factors, including the cost of natural gas, which is used in the manufacturing of NPK fertilizer, fluctuations in global exchange rates, and rising crude oil prices. Additionally, the cost of shipping and the availability of key raw materials also play a role in determining the final cost to farmers. The Sh2 billion government subsidy is a crucial intervention in this context, as it has helped stabilize the price for the 50kg bags, making them more accessible to the farmers who need them most.
In conclusion, the decision by KTDA to advance the fertilizer refunds to December 2024 is a positive step for small-scale tea farmers who have been facing financial pressures due to the high cost of inputs. With fertilizer distribution being accelerated and government subsidies in place, tea farmers are likely to see improved productivity in the coming months, which will ultimately benefit the entire tea sector in Kenya.
