Government move to automate tea payments to protect farmers

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The Government has directed the Kenya Tea Development Authority (KTDA) to introduce an automated green leaf payment system aimed at protecting tea farmers from exploitation by middlemen, brokers and unscrupulous weighing clerks.

Agriculture Principal Secretary (PS), Dr. Kipronoh Ronoh Paul, said the Digital Green Leaf Payment System, will be rolled-out within the next three months and will link tea delivered by farmers at buying centres to a digital payment system, ensuring that farmers are paid according to the actual quantity of tea delivered.

Speaking during an engagement with tea farmers in Bomet and Kericho counties, Dr. Ronoh said the system would help eliminate manipulation of weighing records and delays in payment, while improving transparency in the tea value chain.

“Within the next three months, we want to have the Digital Green Leaf Payment System operational. Every kilogramme delivered by a farmer must be captured and paid for transparently,” said Dr. Ronoh.

The PS said the Government was concerned about reports of farmers losing part of their earnings through fraudulent weighing practices at tea buying centres.

He directed the Tea Board of Kenya, to strengthen supervision of weighing activities and take action against officials and clerks involved in malpractice.

“We will not allow farmers to continue losing one kilogramme out of every 10 kilogrammes they deliver. Those involved in such malpractice must be dealt with,” he said.

Dr. Ronoh also directed KTDA to address delays in the auctioning of tea, saying some warehouses were taking too long to move tea to the market, consequently increasing storage and other costs that ultimately affected farmers.

“When tea stays for too long in the warehouse before being auctioned, the costs continue to rise. These costs eventually affect the farmer. We must make sure that tea moves through the system efficiently,” he said.

The PS said the Government was also keen on reducing the role of brokers in the tea industry and creating opportunities for factories to access international markets directly.

He directed KTDA to assess companies capable of marketing Kenyan tea directly to preferred customers abroad and facilitate their licensing.

“We want our factories to have the opportunity to sell tea directly to preferred customers in the international market. This will help us reduce unnecessary intermediaries and improve returns to farmers,” Dr. Ronoh said.

At Chelal Tea Factory in Kericho County, the PS reaffirmed the Government’s commitment to modernising the tea industry and improving the competitiveness of smallholder tea factories.

Chelal is among 17 factories selected for Phase One of the Government’s tea industry modernisation programme.

Dr. Ronoh presented a Sh103 million Government grant to support the upgrading of Chelal and Motigo tea factories and improve their processing capacity.

He also flagged-off 10,000 tea seedlings for distribution to farmers and issued protective boots, to enhance safety among tea growers.

“Our objective is to build a modern and farmer-centred tea industry, where farmers get value for their produce and factories are equipped to compete effectively in the global market,” he said.

The PS said Chelal Tea Factory would also benefit from the Setet Power Plant, which is expected to strengthen its operations by improving the reliability of electricity supply.

He said the Government’s interventions were aimed at enhancing value addition, improving factory efficiency and ensuring sustainable returns for tea farmers.

Dr. Ronoh further directed the Tea Board of Kenya, to facilitate the establishment of tea kiosks at buying centres, as part of efforts to improve services to farmers.

Tea Board of Kenya Chief Executive Officer, Willy K. Mutai, urged farmers and tea factories to prioritise quality, saying the country must protect its reputation in the international tea market.

“Kenya is the third-best producer of quality orthodox tea globally, and we must protect that position by ensuring that the quality of our tea is maintained from the farm to the market,” said Mutai.

Mutai said farmers, factories and other players in the tea value chain had a responsibility to ensure that only high-quality tea reaches both local and international markets.

The Digital Green Leaf Payment System is expected to provide real-time tracking of green leaf deliveries, reduce fraud at buying centres and facilitate faster and more transparent payments to farmers.

The system will digitally capture daily, weekly or monthly tea deliveries and link the records to farmers’ payment information, reducing opportunities for manipulation at collection points.

Dr. Ronoh said the Government would continue working with KTDA, the Tea Board of Kenya, factory directors and farmers to implement reforms aimed at restoring confidence in the tea industry.

Later the PS presided over the opening of NCPB store at Merigi Center in Bomet County to help farmers access subsidised fertilizer, and also help bridge the gap between farmers and consumers by offering essential planting and post-harvest services and maintaining the country’s grain reserves.

“The National Cereals and Produce Board (NCP B) stores in Kenya are vital state-owned agricultural facilities that serve as the backbone of the country’s food security, price stabilization, and agricultural input distribution,” PS noted.

The engagement was attended by Tea Board of Kenya Chairman Ndung’u Gathinji, KTDA officials, Members of County Assemblies, factory directors, tea farmers and other stakeholders.

By Absalom Namwalo

Reporting originally appeared via Kenya News Agency. Read the full source for additional context.