NAIROBI, Sept 12 (NNN-KBC) — Kenya Tea Development Agency (KTDA) has been urged to tap a Ksh 3.7 billion loan facility that the government has established to support modernization of tea factories.
Speaking during a handing over of Ksh 7 billion in deposits owed to the Kenya Tea Development Agency (KTDA) and which were recovered from the collapsed Chase Bank and Imperial Bank, President Ruto said the facility which will be disbursed through Kenya Development Corporation (KDC) will enable the factories to enhance their tea production capacity through valued addition as the government explores additional markets for the commodity.
“Some of the equipment that are being used by factories are old and you need to modernize them,” said President Ruto.
“We have reduced the interests and KDC will give the loans at 5pc interest compared to 18pc from banks,” he added.
Ruto said the government has been undertaking reforms in the tea sector which have ensure growth in earnings for farmers as well as the country.
“What has happened in this sector is that in 2022 our average price per kilo was about Ksh 51. Today it is Ksh 64 per kilo of green tea. Our total export of tea was Ksh 138 billion, now it’s Ksh 215 billion. My push is that we must get our tea from where we are today to Ksh 270-280 billion by 2027,” he stated.
KTDA has further been urged to encourage the production of orthodox tea which is gaining market globally.
According to President Ruto, Kenya is also exploring to secure additional markets for Kenyan tea after striking trade deals with China which lifted tariffs placed on Kenyan produce.
“There is more value going forward on orthodox tea, and I’m very happy that the kilos of orthodox tea coming out from Kenya has increased from about 1.2 million kilos to 13 million kilos. We should accelerate and as managers in different factories let us begin to focus more on orthodox tea.
The government is also seeking lower tariffs deal with Japan which will grant Kenya grater market access for its locally produced agriculture products.
This comes as the government promises to clear at least Ksh 2 billion owed to tea farmers by December this year. — NNN-KBC
