NAIROBI, Kenya Sept 11 – President William Ruto has handed over to the Kenya Tea Development Authority (KTDA) KSh2.65 billion recovered from collapsed banks.
The money, recovered from Chase Bank and Imperial Bank that collapsed with farmers’ funds five years ago, is now being returned to tea growers across the country.
Through the Kenya Deposits Insurance Corporation, tea farmers are being compensated for the loss occasioned by the collapse of the two banks.
Addressing representatives of more than 600,000 tea farmers at State House, Nairobi on Thursday, President Ruto told the managers of KTDA to ensure the money reached farmers.
“Please, this money must get to the farmers,” he said.
Citing the achievements of the government in the agricultural sector, the President said prices of tea have been increased in the past two years, thanks to reforms introduced in the sub-sector.
President Ruto said his administration has placed agriculture at the very heart of the country’s national transformation agenda, saying it remains the pillar of the economy.
Agriculture, he pointed out, contributes nearly half of the country’s GDP, creating millions of jobs, driving exports, and ensuring food security.
“Through bold, deliberate and targeted reforms, we have registered 6.5 million farmers, distributed 21 million bags of subsidised fertiliser, dismantled cartels, streamlined sector management, opened up new markets, and expanded support systems,” he said.
The President explained that the impact of the reforms in agriculture are visible across the sector, with tea standing out as a powerful success story.
He said tea earnings have risen from KSh138 billion in 2022 to KSh215 billion last year, adding that it was possible to push this to KSh280 billion by 2027.
“Prices have risen from an average of KSh51 to KSh64 a kilo, while export earnings have surged from KSh138 billion to Sh215 billion. With continued value addition, the modernisation of factories and branding of tea, we project that earnings will reach KSh280 billion in two years,” President Ruto said.