Deputy President Rigathi Gachagua made an official announcement over the weekend, revealing Kenya Kwanza’s administration’s imminent initiative to revolutionize tea farming by pegging farmers’ earnings to the dollar exchange rate.
Speaking in Kigumo, Murang’a County, Gachagua disclosed plans to collaborate with the Kenya Tea Development Agency (KTDA) to establish a new payment system that aligns with the fluctuating dollar value.
“This payment model will ensure that small-scale tea farmers witness a substantial increase in their earnings, especially as the dollar continues to appreciate against the Kenyan Shilling,” stated Gachagua, emphasizing the potential impact on farmers’ livelihoods.
The Deputy President expressed astonishment at the stagnation of tea earnings despite the Shilling’s record-high exchange rate against the Dollar.
“If the exchange rate for the Dollar is high, the same should reflect on farmers’ income because the crop trades in the USD,” emphasized Gachagua, highlighting the necessity for a fair compensation system.
Gachagua further outlined his commitment to convene a meeting with KTDA to explore methods aimed at enhancing farmers’ earnings, urging for a dynamic payment structure that correlates with the prevailing exchange rate of the Dollar.
Amidst the current disparity, where Kenyan farmers receive a mere Ksh20 to Ksh25 for every kilogram of green tea leaves sold while the Dollar surpasses 160 against the Shilling, Gachagua underscored the urgency of addressing the existing payment discrepancies.
In a pledge to further empower agricultural communities, Gachagua also announced the government’s commitment to explore avenues for uplifting coffee farmers under President William Ruto’s administration.