- KTDA will deduct fertiliser costs from farmers’ bonus payments.
- The deduction process mirrors the ‘Fuliza’ method used in M-Pesa.
- The price of a 50kg bag of fertiliser is set at Ksh 3,400.
The Kenya Tea Development Agency (KTDA) has announced a new payment system for farmers, similar to the ‘Fuliza’ method used for M-Pesa overdraft repayments. The move is aimed at helping farmers manage the costs of fertiliser provided by the agency.
In this scheme, farmers will have money deducted directly from their annual bonus payments to cover fertiliser costs. This system mirrors how Fuliza automatically deducts money from M-Pesa transactions, making it easier for farmers to settle their fertiliser debts without upfront payment.
How the Deduction Works
KTDA clarified that the deduction process is straightforward. If farmers have ordered fertiliser throughout the year, any unpaid amounts will be deducted from their final bonus payment. This approach ensures that farmers can spread out their payments over time, reducing the immediate financial burden on them.
Wilson Muthaura, CEO of KTDA, explained that the deductions will depend on the quantity of fertiliser a farmer received. This ensures fairness, as each farmer will only pay for what they ordered. A final reconciliation will also verify the amount of fertiliser delivered versus the amount deducted, guaranteeing accuracy in the process.
Fertiliser Prices and Shipments
The cost of a 50kg bag of fertiliser has been set at Ksh 3,400. However, any previous partial payments made through “fertiliser suspense deductions” will be considered when calculating the final amount to be deducted.
The system comes just as a ship carrying 50,120 metric tonnes of fertiliser is expected to dock at Mombasa Port by October 18, 2024. This shipment follows an earlier one of 47,390 metric tonnes, with distribution already underway. Fertiliser imports have risen, from 93,000 metric tonnes last year to 97,000 tonnes in 2024. KTDA procures this fertiliser through international bidding, ensuring competitive prices for over 700,000 small-scale tea farmers.
Farmers’ Reactions to the ‘Fuliza’ Method
While KTDA aims to ease the financial load on farmers, the public has expressed mixed reactions. Many Kenyans took to social media to voice concerns, particularly regarding the government’s promise of subsidized fertiliser.
One online user, Cheruiyot Evans, voiced frustration, saying, “Farmers are on their own. We’ve been left out.”
Another commenter, Samich, criticized President William Ruto’s administration for failing to deliver on the promise of cheaper fertiliser. “The bonus is poor in West Rift. You talked about subsidies, but it seems you were lying,” he wrote.
Roddy, another social media user, questioned the fertiliser price, noting that the promised price of Ksh 2,500 was not met.