𝐀 𝐭𝐞𝐚 𝐩𝐢𝐜𝐤𝐞𝐫 𝐜𝐚𝐩𝐭𝐮𝐫𝐞𝐝 𝐢𝐧 𝐨𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐭𝐞𝐚 𝐟𝐚𝐜𝐭𝐨𝐫𝐢𝐞𝐬 𝐢𝐧 𝐆𝐢𝐭𝐮𝐠𝐢, 𝐍𝐲𝐞𝐫𝐢 𝐂𝐨𝐮𝐧𝐭𝐲, 𝐨𝐧 𝐌𝐚𝐲 𝟏𝟑, 𝟐𝟎𝟐𝟓.

The Kenya Tea Development Agency (KTDA) has dismissed claims circulating on social media alleging that tea factories under its management are facing financial difficulties, with some purportedly on the verge of being auctioned due to debt.

In a statement, KTDA assured its 650,000 smallholder tea farmers that all 71 factories are financially stable and continue to meet their obligations to farmers and other stakeholders on time.

The agency described the financial distress claims as misleading and a deliberate attempt to undermine confidence in the smallholder tea sector.

“We urge all stakeholders to disregard misinformation intended to undermine confidence in the sector and reverse gains made by smallholder tea farmers. Treat such statements with the contempt they deserve,” the statement reads.

The agency clarified that any borrowing by factories is limited to short-term financing facilities which are only taken up for the purposes of bridging cash-flow gaps between payment of farmers for green leaf deliveries and the eventual sale of the processed tea.

KTDA noted that while farmers are paid almost immediately upon delivering green leaf, tea sales take several months, especially during periods of high stock levels.

“This mismatch can occasionally necessitate short-term financing to ensure uninterrupted payment to farmers. Such borrowing is not routine but arises under specific market conditions, including temporary tea gluts,” says the statement.