The government has announced plans to refund fertilizer money to specific farmers in the country. In a notice on Thursday, November 28, the Kenya Tea Development Agency Holdings (KTDA) said small tea farmers will get fertilizer suspense refunds in January 2025.
KTDA said the refund will be issued alongside the payment for their green leaf produce by January 5, 2025.
“Smallholder tea farmers affiliated to KTDA will receive the fertilizer suspense refunds together with the Green leaf (GL) payment by the 5th of January 2025,” reads part of the notice.
KTDA said it had ordered 96,988 MT for the current year and the final batch of 8000 MT fertilizer shall be distributed to the farmers by the first week of December 2024.
The Agency explained that reconciliation would be carried out to establish a refund payable for each farmer.
KTDA on Subsidized Fertilizer
According to KTDA, the cost for a 50kg bag of NPK, chemically compounded fertilizer was 3400.00 procured through competitive bidding in 2024.
However, the Agency said the Government of Kenya gave a subsidy of Ksh2Billion in November 2024 reducing the price to Ksh2,500.00 per bag.
“On behalf of tea farmers affiliated to KTDA, we thank the Government of Kenya for the subsidy that led to reduced cost of fertilizers and hence better payments to farmers,” reads another part of the notice.
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Suspension of the Distribution
The Ministry of Agriculture suspended the subsidized fertilizer program after confirming the distribution of sub-standard fertilizer to farmers in April 2024.
This was after fertilizer distributed by KEL Chemicals failed to meet the Kenya Bureau of Standard (KEBS) quality requirements.
Additionally, KEBS took legal action against KEL Chemicals for distributing substandard products, in accordance with the Standards Act Cap 496.
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“This measure underscores the Government commitment to upholding stringent product quality and safety standards, ensuring accountability and safeguarding the agricultural sector and the wider public,” the Ministry said.
Also Read: Mbadi’s Ministry in the Spot Over Ksh161 Billion Unexplained Payments
Ruto’s Warning
Commenting on the issue, President William Ruto sent a warning to all the individuals involved.
He said those behind the illicit trade would be arrested and prosecuted.
“We will deal with fraudsters trying to undermine our food production program by selling fake fertilizer,” he said.
He also called for compensation for farmers who fell victim to the distribution of counterfeit fertilizer.
Ruto said it was the responsibility of the implicated company to reimburse affected farmers.
“Every farmer will get the correct fertilizer. Those few people who want to take advantage of food production, the company that was involved, should compensate farmers who bought fake fertilizer, and they should be given new fertilizers free of charge,” Ruto stated.
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