Kenyan small-scale tea growers are preparing for a challenging period as escalating fuel costs threaten to diminish their profits, according to the Kenya Tea Development Agency.
KTDA’s national chairperson Enos Njeru indicated that elevated fuel costs will adversely affect farmers’ bonus payments and total income during the upcoming year.
Njeru made these remarks during a labor management workshop organized by the Federation of Kenya Employers on Wednesday.
Njeru highlighted that the tea industry is already suffering from disturbances triggered by conflicts in the Middle East.
These conflicts have interfered with vital export pathways, resulting in shipment delays and increased transportation and insurance expenses, he explained.
Njeru pointed out that rising fuel prices will increase the cost of fertilizer scheduled for June delivery, as numerous fertilizer ingredients derive from petroleum products while worldwide shipping fees continue to be high.
This situation occurs as the agricultural sector confronts substantial difficulties.
KTDA Board vice chairman Samson Mosonik stated that labor constitutes the primary expense in tea cultivation.
He advocated for improved labor management to enhance productivity and safeguard farmers’ income.
Njeru appealed to factory boards and administration to swiftly implement cost-cutting measures to reduce operational expenses and mitigate the impact of escalating fuel costs and worldwide disruptions.
He additionally requested the government to decrease taxes on tea, which stands among the most heavily taxed agricultural products.
Njeru further requested governmental assistance programs to help farmers through the prevailing economic difficulties.
These warnings coincide with unprecedented fuel price increases declared this week by the Energy and Petroleum Regulatory Authority (EPRA), with premium petrol and diesel approaching the Sh200 per liter threshold.
Middle East tensions have additionally complicated export arrangements for Kenya’s tea, a crucial source of foreign revenue that sustains more than 700,000 small-scale farmers.