By KPC Reporter
President William Ruto has handed over KSh2.65 billion to the Kenya Tea Development Authority (KTDA)—funds recovered from the collapsed Chase Bank and Imperial Bank.
The financial institutions had held the savings of thousands of tea farmers.
The collapse of the two banks five years ago left over 600,000 smallholder tea growers reeling, their hard-earned money locked away in a financial limbo.
For years, these farmers—many of whom rely solely on tea for their livelihoods—have struggled to stay afloat, facing mounting costs and dwindling returns.
Now, through the Kenya Deposit Insurance Corporation (KDIC), the government has begun compensating farmers for their losses, marking a long-awaited victory in their fight for justice.
“This money must get to the farmers,” President Ruto emphasized during a gathering at State House, Nairobi, attended by representatives from across the tea-growing regions.
The President praised the resilience of tea farmers and highlighted the broader transformation underway in the agricultural sector.
He cited reforms that have led to a rise in tea prices—from an average of KSh51 to KSh64 per kilo—and a surge in export earnings from KSh138 billion in 2022 to KSh215 billion last year.
With continued investment in value addition, factory modernization, and branding, he projected earnings could reach KSh280 billion by 2027.
“Agriculture is the backbone of our economy,” Ruto said. “It contributes nearly half of our GDP, creates millions of jobs, drives exports, and ensures food security. That’s why we’ve placed it at the heart of our national transformation agenda.”
The President also reaffirmed his administration’s commitment to transparency, announcing that digital procurement for government goods and services would be fully implemented to curb corruption and inefficiency.
He warned that officials resisting the shift to e-procurement should step aside.
KTDA Chairman Geoffrey Kirundi thanked the President for his decisive intervention.
“Without your leadership, we would not have recovered this money,” he said.
Also present were Agriculture Cabinet Secretary Mutahi Kagwe, Senate Agriculture Committee Chair David Wakoli, National Assembly Agriculture Chair John Mutunga, and KDIC CEO Hellen Chepkwony.
They all echoed the significance of the recovery and the broader reforms reshaping Kenya’s agricultural landscape.