The agency announced Thursday that the money will be refunded next year alongside the green leaf payment for the month of January.
“Small-scale tea farmers will receive the fertiliser suspense refunds together with the green leaf payment by January 5, 2025,” a notice reads.
KTDA was to deduct Sh2,500 for every bag distributed to the farmers in the final payment (bonus) released in October.
This follows the disbursement of Sh2 billion through the government’s fertiliser subsidy programme aimed at cushioning the over 700, 000 farmers from the high cost of the farm inputs and ensuring an improved pay.
The agency, however, deducted Sh3, 400 for each bag leading to an outcry from farmers across the country.
According to the agency, 96,988 metric tons of fertiliser was ordered for the current year with the final batch of 8,000 metric tons set to be distributed to the farmers by the first week of December 2024.
“...reconciliation shall be done to establish refund payable for each farmer,” it states.
A week ago Principal Secretary Paul Ronoh ordered the agency to refund farmers all the money deducted from their bonuses.
“We have released Sh2 billion to subsidise the cost of fertilisers and that deductions made by the organisation should be paid back to farmers by December 5, 2023,” he said.
This adds to the Sh1.4 billion that was availed in July 2023 for the programme.
KTDA fertiliser credit scheme enables farmers to pay in instalments over several months with the remainder being deducted in a bonus payout.
The cost of a 50kg bag is determined by several factors including the cost of natural gas (a key component in the manufacture of NPK chemically compounded fertilizer), exchange rates, global supply constraints, high crude oil costs and the cost of shipment among other factors.
