KTDA now retains fertilizer prices at Sh2,500 following state intervention
Wangari Mwangi- KNA
Over 700,000 small scale tea farmers will continue to purchase NPK fertilizer at Sh2,500 per 50- kilogramme bag following a decision by the Kenya Tea Development Agency (KTDA) to overturn its earlier decision to hike fertilizer prices by Sh900 per bag.
KTDA says that the resolution was reached following confirmation of the availability of a fertilizer subsidy of Sh2 billion for the 2024/2025 Financial Year from the Ministry of Agriculture in support of the programme.
KTDA said it was directed by the Ministry to supply the input to farmers at the government recommended price (Sh2,500 per 50-kilogramme bag) as they await the subsidy payment to be processed.
“We are pleased to inform our farmers that the government has confirmed a fertilizer subsidy for the year 2024 and a bag of 50 kilogrammes of NPK fertilizer will now cost Sh2,500,” KTDA said in press release.
“The money will be recovered during the second payment and monthly payment for greenleaf for the month of September 2024 based on bags applied for,” the release added.
The directive nullifies the agency’s earlier memo to factory unit managers dated October 9th in which it had set the final cost of the input at Sh3,400 per 50-kilogramme bags.
Based on the memo, the amount was to be deducted from farmer’s bonus payment which is scheduled to be credited to the farmers’ bank accounts this week.
“Outstanding balances for fertilizer imported for farmers for this financial year will be deducted from their payment during the final payment popularly known as bonus scheduled for next week. The final cost is Sh3,400 per 50 kilogramme-bag of fertilizer. Partial payment previously recovered through fertilizer suspended deduction will be netted off against this amount,” stated the October 9th memo.
At the same time, the vessel carrying the second consignment of NPK fertilizer for smallholder tea farmers is set to dock at the port of Mombasa on October 18th.
The ship will deliver approximately 50,120 metric tonnes which is the final batch of the 97,000 metric tonnes that were procured by KTDA through competitive international bidding.
KTDA says distribution of the 47,390 metric tonnes received from the first shipment is currently ongoing.
The agency noted that the arrival of the input would coincide with the onset of the short rains and would go a long way in ensuring that the farmers produce consistent high quality and quantity green leaf which is essential for premium tea production.
“This year’s procurement of 97,000 metric tonnes marks an increase from last year’s 93,000 metric tonnes. The fertilizer chemically compounded NPK 26:5:5 is packed in 50-kilogramme and 25-kilogramme bags and is distributed to the farmers through their respective factories,” the statement said.