The Kenya Tea Development Agency (KTDA) has signed a Sh 3.5 billion financing deal with Standard Chartered Bank Kenya. The loan will be used for the purchase of 95,000 metric tonnes of fertilizer to be distributed to KTDA tea farmers across the country.
The deal, which is part of KTDA’s fertilizer supply program, will see over 650,000 farmers who own the 69 factories benefit from the supply of fertilizer through the arrangement.
In entering into the arrangement, KTDA said it will leverage on economies of scale afforded to it by its size to obtain the most competitively priced fertilizer in an international open tender. The fertilizer is set to arrive in July and August for subsequent distribution to farmers for their use at the onset of the short rains.
Farmers will start receiving the fertilizer from the end of July, with the quantity of fertilizer a farmer receives depending on the number of tea bushes owned.