The Kenya Tea Development Agency (KTDA) has cancelled a tender for the supply of nearly two million bags of fertiliser.
Through its Management Services subsidiary, KTDA had advertised an international tender for the prequalification of firms to supply 1,997,500 bags of NPK fertiliser.
KTDA Management Services (KTDA MS) is responsible for importing and distributing fertiliser to smallholder tea farmers in Kenya.
Interested firms were required to submit technical proposals in the first phase of the prequalification process.
According to the now-cancelled tender, firms had until February 4 to submit their bids, which were scheduled to be opened the same day at Majani Plaza, Koinange Street, Nairobi.
“Applicants or their representatives may attend the meeting,” read part of the cancelled advertisement.
“The tender opening shall be virtual through a video link. Bidders will be provided with log-in credentials before the tender opening.”
However, on Thursday, KTDA halted the tender.
The fertiliser —50kg bags of chemically compounded NPK 26:5:5—was intended for small-scale tea farmers across the country, amounting to approximately 99,875 metric tonnes.
Bidders were required to pay a registration fee of Sh6,000 before being allowed to submit their bids. KTDA had previously stated that it was under no obligation to accept any proposal or provide reasons for its decision.
“KTDA’s decision on the prequalification process shall be final, and only prequalified firms shall be invited to submit financial bids,” the agency stated.
As of October 2024, KTDA sold fertiliser to tea farmers at Sh2,500 per 50kg bag, a price subsidized by the government to reduce costs from Sh3,400.
A notice dated October 9 from KTDA announced an increase in fertiliser prices to Sh3,400 per bag, contrary to the government's subsidy program.
Following public outcry, KTDA clarified in a letter by its CEO, Wilson Muthaura:
“You are advised to ensure that the fertilizer is supplied to tea farmers at the government-recommended price of Sh2,500 per 50kg bag as the Ministry processes the subsidy payments.”