Embu leaders appeal for a low interest tea fund

Embu, Sunday, May 21, 2023

K.N.A By Steve Gatheru

Embu County leaders have appealed to the government to consider starting a tea farmers’ fund to help farmers break from a vicious cycle of indebtedness to commercial lenders.

Led by Governor Cecily Mbarire, the leaders who included Senator Alexander Mundigi, Woman Representative Njoki Njeru and Manyatta MP Gitonga Mukunji, said the fund could be structured along the lines of the Hustler Fund.

The said currently, farmers live on debts that they offset with their tea earnings but immediately start borrowing again in order to be able to manage their crop.

They were speaking at the University of Embu today during the International Tea Day celebrations.

Governor Mbarire also asked the government to help farmers' tea factories to acquire reasonable capital loans from alternative lenders such as the World Bank in order to help them avoid the burden of commercial loans.

She also advised the farmers to consider going into public/private partnerships in their diversification programmes so as to avoid heavy debts.

Tea factories around the country are exploring ways of diversifying to the making of orthodox teas that will require plants that cost millions of shillings.

Senator Mundigi, who is a member of the Senate Agriculture Committee said they are exploring ways of reducing middlemen so that the bigger share of tea earnings go to farmers.

Ms Njeru urged farmers to tend their tea well to ensure they maintain the high quality Embu County tea factories - Mungania, Kathangariri and Rukuriri are reputed for.

Tea Board of Kenya Chairman Dr David Kiarie noted that many of the factories are burdened with debts incurred when investing in projects to cut the cost of energy and said factories should in future consider partnerships with the private sector so that they do not leave the farmers exposed to debt.

He said energy costs are the biggest headache for the 950,000 farmers in 19 counties that are dependent on the tea sector.

Courtesy K.N.A