Deputy President Rigathi Gachagua is set to spearhead discussions with the Kenya Tea Development Agency (KTDA) this week, with a target to bolster tea earnings for small-scale farmers in light of the strengthening US Dollar against the Kenyan Shilling.
Addressing concerns raised by Gatanga MP Edward Muriu during a gathering in Kigumo, Murang’a County, Gachagua emphasized the need for tea farmers’ earnings to reflect the fluctuations in the exchange rate, given that KTDA sells tea in US Dollars.
Acknowledging the dip in income for tea farmers despite the favorable exchange rate of the dollar, Gachagua assured that the government is actively addressing the issue to align farmers’ earnings with the currency’s exchange rate.
“In agreement with Mr. Muriu, it’s imperative that the earnings of our tea farmers correspond with the exchange rate of the dollar since tea trade is conducted in USD. I will convene discussions with KTDA to explore avenues for enhancing these earnings. Static payment rates are untenable; earnings should mirror the prevailing exchange rate,” stated Gachagua.
As of the end of the week, the official exchange rate stood at Sh163 per US dollar. Presently, farmers receive between Sh20 and Sh25 for each kilogram of green leaf delivered, supplemented by periodic bonuses from tea sales, contingent upon various factors including tea quality.
Moreover, Deputy President Gachagua urged the Judiciary to expedite the resolution of legal disputes hindering government-led reforms in the tea sector. He expressed disappointment over the prolonged delay caused by the suspension of regulatory implementation and the unresolved case filed in court in 2020.
“Tea reforms were meticulously crafted with extensive public engagement. However, the suspension of regulatory measures and the prolonged legal dispute, now spanning over three years, have impeded progress,” remarked the Deputy President.
While interim court orders issued in 2020 temporarily halted the enactment of certain provisions in the Tea Act pending further legal proceedings, Gachagua appealed to judicial authorities to prioritize the interests of Kenyan farmers.
“Judicial officers should consider the ramifications of their decisions on the welfare of Kenyans. We must not arbitrarily stifle progress without assessing the impact on the public,” emphasized the Deputy President.
Tasked by President William Ruto to lead reforms in the tea, coffee and dairy sectors, Gachagua has reaffirmed the government’s commitment to dismantling cartels within the agricultural value chain to bolster farmers’ earnings.
Furthermore, despite facing resistance, particularly in the coffee sector, Gachagua remains resolute in his determination to streamline operations for the benefit of farmers, underscoring that opposition would not deter him from fulfilling the reform agenda entrusted to him by President Ruto.
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