Tea farmers who market the produce through the Kenya Tea Development Agency will be paid 50 percent of the delivery monthly with the rest paid as bonus annually.
This in addition to allowing individual tea factories to sell the produce directly at the tea auction is among a raft of measures that have been effected by the government to streamline the tea value chain.
Previously farmers were being paid by KTDA factories 14 to 16 shillings per kilo monthly with the bulk of the money paid as bonus in October.
The move that is likely to lessen the grip of the Kenya Tea Development Agency on the country’s tea sector.
Agriculture Cabinet Secretary Peter Munya accused some tea marketers of exploiting farmers through price fixing, calling for automation of the tea auction in the next two months for accountability.
On payments, small scale farmers who market their produce through KTDA will be receive at least 50 percent of tea sale proceeds in a month with the balance paid as bonus.
Buyers of the green leaf will have to deposit a down payment of 10 percent with the balance paid before export of the purchased consignment, in turn factories are required to pay farmers 30 days after receiving the auction proceeds.
To reduce conflict of interest, a single broker will only represent 15 factories at the tea auction.
The government will further procure services of individuals with experience on the best tea practices as it seeks to further streamline the tea value chain.