The Mountain Journal
editor@themountainjournal.co.ke
President William Ruto handed over to the Kenya Tea Development Agency (KTDA) KSh2.65 billion recovered from collapsed banks.
The money, recovered from Chase Bank and Imperial Bank that collapsed with farmers’ funds five years ago, was returned to tea growers, through the KTDA chaired by Chege Kirundi.
Through the Kenya Deposits Insurance Corporation, tea farmers are being compensated for the loss occasioned by the collapse of the two banks.
Addressing the factory directors at State House, in Nairobi on Thursday, President Ruto told the managers of KTDA to ensure the money reached farmers.
“Please, this money must get to the farmers,” he said.
Citing the achievements of the government in the agricultural sector, he said prices of tea have increased in the past two years, thanks to reforms introduced in the sub-sector.
President Ruto said his administration has placed agriculture at the very heart of the country’s national transformation agenda, saying it remains the pillar of the economy.
Agriculture, he pointed out, contributes nearly half of the country’s GDP, creating millions of jobs, driving exports, and ensuring food security.
“Through bold, deliberate and targeted reforms, we have registered 6.5 million farmers, distributed 21 million bags of subsidised fertiliser, dismantled cartels, streamlined sector management, opened up new markets, and expanded support systems,” he said.
The President explained that the impact of the reforms in agriculture are visible across the sector, with tea standing out as a powerful success story.
He said tea earnings have risen from KSh138 billion in 2022 to KSh215 billion last year, adding that it was possible to push this to KSh280 billion by 2027.
“Prices have risen from an average of KSh51 to KSh64 a kilo, while export earnings have surged from KSh138 billion to Sh215 billion. With continued value addition, the modernisation of factories and branding of tea, we project that earnings will reach KSh280 billion in two years,” President Ruto said.
At the same time, the President pointed out that there would be no going back on the digital procurement of government goods and services, saying it will be implemented to prevent corruption and the theft of public funds.
He explained that the e-procurement platform is a cornerstone of the government’s strategy to enhance transparency in the procurement of goods and services.
He hit out at those opposed to e-procurement, saying they benefit from the inefficiencies of the current manual processes.
Emphasising that no amount of resistance would deter his administration’s plans, he warned that officials unwilling to adapt to the digital platform should resign.
“We lose 40 per cent of government money through procurement. That’s why we must embrace e-procurement by all means,” the President explained.
He said time had come for the public to be informed through a publicly available digital platform what was being supplied to the government and at what cost.
“We are putting e-procurement in place so that everybody can know how much an item was bought for and who sold it to the government. This is part of transparency and accountability,” President Ruto said.
Agriculture Cabinet Secretary Mutahi Kagwe commended Parliament for its commitment to addressing issues affecting farmers.
KTDA Chairman Geoffrey Kirundi thanked the President for his intervention that had led to the recovery of KSh2.65 billion that would now be returned to the farmers.
“Without your intervention, we could not have gotten the money,” Mr Kirundi said.
Kirundi said the sector was faced by myriad challenges that often lead to disruptions of farmers’ incomes.
He added that despite the challenges, they remain focused to make the industry more sustainable and responsive to the needs of both producers and consumers.
He detailed that KTDA Holdings and its subsidiaries were continuously looking for new ways to earn revenues for tea farmers and Government support was required.
He said in efforts to intensify the market there are plans to host a KTDA teas International Conference later in the next year.
“ There is a need for a partnership with government agencies, especially those in the tourism sector,” said the chairman..
“ We appeal for a parcel of land within Dongo Kundu SEZ in Mombasa for establishing warehousing and tea packaging,” said Kirundi.
The KTDA directors further launched an appeal that they be allowed to manage public forests in their areas for both conservation and fuel wood.
Senate Agriculture and Livestock Committee Chairman David Wakoli, his National Assembly counterpart John Mutunga and Kenya Deposit Insurance Corporation CEO Hellen Chepkwony also spoke at the meeting.
