Tea farmers in Murang’a are poised to experience improved benefits following a recent agreement signed between their directors and the Kenya Tea Development Agency (KTDA).
The agreement, finalized on Wednesday, resolves previous disputes between the management of 10 tea factories in the county and KTDA. Initially, certain contentious provisions had deterred farmers from entering into the new agreement with KTDA, prompting intervention from the Tea Board of Kenya.
Despite initial disagreements during the signing, a resolution was reached later in the evening. KTDA agreed to grant tea factory boards full authority over finances, a departure from the previous arrangement where KTDA managed finances. This shift is expected to lead to cost reductions and ultimately increase returns for farmers.
Jacob Kahiu, Chairman of the Tea Board of Kenya, commended the signing of the five-year agreement, highlighting that factory directors will now have control over finances while KTDA focuses on processing and marketing responsibilities. Additionally, the management fee levied by KTDA per kilo of tea supplied will decrease from Sh. 2.5 to Sh. 1.5, resulting in higher returns for farmers.
Kahiu emphasized the importance of electing transparent and reliable directors to manage finances effectively at the factory level.
Solomon Maina, Chairman of KTDA Management Services, praised Murang’a directors for their perseverance throughout the seven-month negotiation process. He assured collaboration between management agents and factory boards to deliver quality services to farmers.
Chege Kirundi, a Zone 3 board member, welcomed the new agreement, highlighting its significance in granting farmers control over their finances and reducing expenses previously incurred. Kirundi estimated that tea factories in Murang’a could save approximately Sh. 2 billion annually due to reduced management fees.
Enos Njeru, Chairman of KTDA Holdings, revealed plans to invest in technology to enhance service delivery to farmers. Efforts will focus on computerization to monitor tea stocks in warehouses and factories, addressing challenges in stock monitoring and sales.
