With farmers preparing for the rainy season, the Kenya Tea Development Agency (KTDA) has announced that the fertiliser money they owe will be deducted from their bonus payments the way Fuliza payments are deducted from M-Pesa.
In a statement, KTDA stated that its credit scheme allows farmers to pay for fertiliser they have ordered in instalments to reduce financial burden on them.
“Any amounts outstanding at the close of the financial year are deducted from the final green leaf payment. Outstanding balances for fertiliser imported for farmers this year will be deducted from their payments during the final payment popularly called bonus scheduled for next week,” it explained.
Additionally, deductions will be made based on the quantity of fertilizer each farmer applied for.
However, KTDA clarified that a reconciliation will then be carried out to verify the number of fertilizer bags received against amounts deducted.
The agency added that the final cost for a 50kg bag of fertilizer is Ksh3,400 and partial payments previously recovered through fertilizer suspense deductions will be netted off against the amount.
Fertiliser Shipments into the Country
This comes as the ship carrying the final batch of NPK fertiliser for smallholder tea farmers is set to dock at the Mombasa Port at the end of next week.
The vessel will deliver approximately 50,120 metric tonnes of fertilizer on October 18, 2024. Moreover, the distribution of the 47,390 metric tonnes received in the first shipment is currently ongoing.
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Fertiliser shipments into the country have increased from last year’s 93,000 metric tonnes to 97,000 metric tonnes in 2024.
KTDA procures fertiliser in bulk for more than 700,000 small scale tea farmers through competitive international bidding. Consequently, the fertiliser is then distributed to the farmers through various KTDA-managed factories around the country.
Kenyans React to the Payment Method
Following the statement from KTDA on how farmers will pay for fertiliser, Kenyans online questioned the government on the promise of subsidized fertilizer prices.
One Cheruiyot Evans stated that Kenyan farmers are on their own following the fertiliser price contradictions.
“A lot is happening now, and farmers we’ve been left out. We are on our own,” he remarked.
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Another one under the name Samich faulted President William Ruto‘s commitment to provide farmers with subsidized fertilizer terming it as lies.
“Bonus is poor in West Rift. You have been talking about subsidies, but it seems you were lying,” he lamented.
One more online user by the name Roddy questioned the price, expecting it to be lower.
“Not Ksh 2,500?” he remarked.
As farmers expect bonus payments, eagerness surrounds how much money they will be left with after KTDA makes the deductions.
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