Monday February 12, 2024 – Tea farmers may soon be smiling all the way to the bank if the proposal by Deputy President Rigathi Gachagua sees the light of day.
Speaking in Kigumo, Murang’a
County, Gachagua revealed the plans to President William Ruto’s government to
pay tea farmers based on the dollar exchange rate.
He noted that he would meet with
the Kenya Tea Development Agency to work on frameworks for the new payment
method.
It is Gachagua’s belief that
this payment model will increase tea earnings for small-scale farmers as the
Dollar continues to appreciate against the Shilling.
The Deputy President wondered
how tea earnings had remained constant at a time when the Shilling exchanged at
an all-time high against the Dollar.
Going forward, a higher exchange
rate of the Dollar will match earnings for tea farmers according to the Deputy
President.
“If the exchange rate for the
Dollar is high, the same should reflect on farmers' income because the crop
trades in the USD,” Gachagua stated.
“I will convene a meeting with KTDA and explore ways of improving the earnings.
"We cannot have a fixed rate of
payment; the price should be paid at the existing exchange rate of the Dollar
on the respective day.”
While the Dollar is exchanging
above 160 against the Shilling, Kenyan farmers receive a paltry Ksh20 to Ksh25
for every kilogram of green tea leaves sold.
Additionally, the bonus given at
the end of the year does not reflect the current exchange rate but
the quality of tea sold by the farmer.
The Kenyan DAILY POST.
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