Tea farmers to reap big from new KTDA Sh912m credit deal

KTDA CEO Mr Lerionka Tiampati and Mr Nanno Kleiterp during the signing of Sh911.6 million contract at KTDA Head Office, Nairobi. The funds will allow the over 560, 000 small scale tea farmers access affordable credit facilities from Greenland Fedha

More than 560,000 small-scale tea farmers in various parts of the country will now be able to access affordable credit facilities to enable them expand and diversify investments.

This follows the signing of a Sh911.6 million pact between the Kenya Tea Development Agency Holding Ltd (KTDA) and FMO, a Dutch Development Bank aimed at making small-scale tea growers self-sufficient.

Speaking during the signing of the contract in Nairobi, KTDA Chief Executive Officer Lerionka Tiampati said the micro and small enterprise fund would empower tea growers to invest in other enterprises besides tea to supplement their earnings. “We are very happy to be signing a contract with FMO, as we begin to set up financial structures that will allow tea growers to access credit easily and at affordable rates,” he said.

Diversify income

He added: “Through this fund, tea farmers will be able to diversify their income sources to enable them send their children to school, feed them and expand their businesses.”

FMO Chief Executive Officer Nanno Kleiterp said the funding is in line with the bank’s focus to improve key sectors in Africa especially in the areas of financial and renewable energy.

“We are looking forward to establishing a long-term relationship with KTDA through the Dutch Development Bank so that we can continue creating sustainable economic growth and thereby improving people’s living standards,” he noted.

The farmers will access the money through Greenland Fedha (GFL), a subsidiary of KTDA which was started in 2009 to assist small scale tea farmers access affordable credit using tea as collateral.

Greenland Fedha General Manager, Ms Anne Gathuku, said the funding will enable the company to reach more farmers with credit facilities. “It is a significant cash flow injection that will give us an opportunity to improve our services to the farmers,” she said.