Pay mini-bonus or quit, tea agency bosses told

KTDA chairman Peter Kanyago. During the weekend Mr Kanyago said the agency had released Sh1.5 billion to pay the mini bonus to farmers in Mt Kenya region, Nyeri, Embu, Meru,and Murang’a.  

In Summary

• Its officials, who included Rift Valley branch chairman Joel Chepkwony, his deputy Dismas Mbaria, representing Murang’a region; Kisii’s Pius Nyakundi and John Aligula (Nandi-Kakamega) spoke separately to the Nation on telephone and through interviews at Nation Centre, Nairobi.
• Counterparts from Mount Kenya region received their payments from Friday. The farmers’ lobby also took issue with a decision by KTDA to borrow money to meet the mini bonus obligations.
• KTDA chairman Peter Kanyago at the weekend said the agency had released Sh1.5 billion to pay the mini bonus to farmers in Mt Kenya region, Nyeri, Embu, Meru,and Murang’a.

By ZEDDY SAMBU
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Tea farmers have given directors of the Kenya Tea Development Agency (KTDA) two weeks to pay their half-year bonus or be sent home.
The farmers, who want a bonus of at least Sh5 per kilo, gave the ultimatum through the Kenya Union of Small Scale Tea Owners (Kusstoa).

Its officials, who included Rift Valley branch chairman Joel Chepkwony, his deputy Dismas Mbaria, representing Murang’a region; Kisii’s Pius Nyakundi and John Aligula (Nandi-Kakamega) spoke separately to the Nation on telephone and through interviews at Nation Centre, Nairobi.

Farmers in these regions had not been paid by Sunday, despite the June 30 deadline given, as per a presidential directive on June 11.

Counterparts from Mount Kenya region received their payments from Friday. The farmers’ lobby also took issue with a decision by KTDA to borrow money to meet the mini bonus obligations.

“We have given them 14 days to resign or pay up. They have sold the tea and should not borrow money to pay us,” said Mr Chepkwony on telephone.
Factories’ that are yet to receive pay include Momul, Tegat, Kapkatet, Litein, Mudete, Kaptumo and all factories in the Kisii/Nyamira region.

Meanwhile, those in Murang’a complained that the rate of Sh3 per kilogramme was too little when compared with what counterparts in other areas in Central Kenya got — Sh5 for every kilogramme.

“We want to be paid Sh5 per kilo,” said Mr Mbaria.

KTDA chairman Peter Kanyago at the weekend said the agency had released Sh1.5 billion to pay the mini bonus to farmers in Mt Kenya region, Nyeri, Embu, Meru,and Murang’a.

“KTDA had to borrow to pay the mini bonus for factories whose cash flow had not improved,” he said.

Making the announcement at a press conference in Nyeri, Mr Kanyago said the pay-out will hit Sh2 billion once the agency receives approval to pay from the boards of nine factories in Kericho and Bomet.

The tea agency had in March announced that it would not pay the mini bonus due to cash flow problems, following plummeting of tea prices since July 2013.

But pressure from growers culminated in a stakeholders meeting at State House where the President announced that farmers would be paid the money.