KTDA receives Sh 2.65 billion from collapsed Banks

BY ERIC ABUGA

Through the Kenya Deposits Insurance Corporation, tea farmers are being compensated for the loss occasioned by the collapse of the two banks.

Addressing representatives of more than 600,000 tea farmers at State House, Nairobi on Thursday, President William Ruto told the managers of Kenya Tea Development Authority (KTDA) to ensure the money reached farmers.

President Ruto handed over to the KTDA Sh2.65 billion recovered from collapsed banks. The money recovered from Chase Bank and Imperial Bank that collapsed with farmers' funds five years ago, is now being returned to tea growers across the country.

"Please, this money must be given to the farmers," he said.

Citing the achievements of the government in the agricultural sector, the President said prices of tea have been increased in the past two years, thanks to reforms introduced in the sub-sector.

President Ruto said his administration has placed agriculture at the very heart of the country's national transformation agenda, saying it remains the pillar of the economy.

Agriculture, he pointed out, contributes nearly half of the country's GDP, creating millions of jobs, driving exports, and ensuring food security.

"Through bold, deliberate and targeted reforms, we have registered 6.5 million farmers, distributed 21 million bags of subsidized fertilizer, dismantled cartels, streamlined sector management, opened up new markets, and expanded support systems," he said.

The President explained that the impact of the reforms in agriculture is visible across the sector, with tea standing out as a powerful success story.

He said tea earnings have risen from Sh138 billion in 2022 to Sh215 billion last year, adding that it was possible to push this to Sh280 billion by 2027.

"Prices have risen from an average of Sh51 to Sh64 a kilo, while export earnings have surged from Sh138 billion to Sh215 billion. With continued value addition, the modernization of factories and branding of tea, we project that earnings will reach Sh280 billion in two years," President Ruto said.

At the same time, the President pointed out that there would be no going back on the digital procurement of government goods and services, saying it will be implemented to prevent corruption and the theft of public funds.

He explained that the e-procurement platform is a cornerstone of the government’s strategy to enhance transparency in the procurement of goods and services.

The Head of State hit out at those opposed to e-procurement, saying they benefit from the inefficiencies of the current manual processes.

Emphasizing that no amount of resistance would deter his administration’s plans, he warned that officials unwilling to adapt to the digital platform should resign.

"We lose 40 per cent of government money through procurement. That's why we must embrace e-procurement by all means," the President explained.

He said time had come for the public to be informed through a publicly available digital platform what was being supplied to the government and at what cost.

"We are putting e-procurement in place so that everybody can know how much an item was bought for and who sold it to the government. This is part of transparency and accountability," President Ruto said.

Agriculture Cabinet Secretary Mutahi Kagwe commended Parliament for its commitment to addressing issues affecting farmers.

KTDA Chairman Geoffrey Kirundi thanked the President for his intervention that had led to the recovery of Sh2.65 billion that would now be returned to the farmers.

"Without your intervention, we could not have gotten the money," Mr Kirundi said.

Senate Agriculture and Livestock Committee Chairman David Wakoli, his National Assembly counterpart John Mutunga and Kenya Deposit Insurance Corporation CEO Hellen Chepkwony also spoke at the meeting.