As tea farmers in Meru and other parts of the country are reeling under financial strain as a result of low payments, two Meru lawyers have blamed the national government for failing to release a fertilizer subsidy owed to the Kenya Tea Development Agency.
The lawyers who have represented farmers on taxation and other matters have heaped the blame on the government for the low bonus payments, a major source of frustration for the farmers.
As farmers lamented low bonus payments and directed their anger at tea factory directors, Mugambi Imanyara, lawyer-cum farmer, blamed the government for failing to remit an outstanding fertiliser subsidy owed to the KTDA, which issued fertilisers to factories to distribute to farmers.
Imanyara said tea factory directors were being wrongly blamed by farmers for the low bonuses, yet it is the government that has caused it by failing to compensate KTDA by settling the subsidy funds.
One of the most affected factories in Meru is the 14,000-member Michiimikuru factory in Tigania East, where Chairman Stephen Kobia said they were owing Sh183 million on fertiliser subsidy and Sh106m on VAT refund. "It is part of the loans the factories are having," Kobia said.
Imanyara said Kionyo tea factory in South Imenti had Sh167m deducted and that affected the bonus payment.
"The government promised it would remit the subsidy funds to KTDA but it has not released the subsidy funds, yet KTDA used its funds to buy fertilizer which it distributed to farmers at Sh2,500," Imanyara said.
He said after KTDA deducted Sh167m meant for Kionyo tea factory, the bonus payment went down by Sh7 a kilo.
"Had the government released the subsidy, the bonus for Kionyo tea farmers this year should have increased by Sh7 a kilo. Farmers are blaming the (tea factory) directors for the low bonus, but in actual fact it is the government that has failed to release the subsidy funds," Imanyara said.
He added: "The tea directors cannot speak out about this because they would be victimised, but I can speak out. Michiimikuru (factory) is one of the most affected factories in Meru."
Imanyara said they planned to issue a demand notice to the government to pay up the outstanding fertiliser subsidy.
Imenti tea factory had emerged as the best paying with Sh48, while Michiimikuru factory in Tigania East was Sh20.
Others were Githongo (Sh37), Kinoro (Sh37), Kionyo (Sh36), Weru (Sh34.70), Kiegoi (Sh45.70) and Sh36 at Igembe tea factory.
Lawyer of commercial law and taxation Earnest 'Mkulima' Kimaita accused Meru political leaders of failing to protect vulnerable farmers when they facilitated the passage of the tea levies.
Kimaita lamented it was unfortunate that farmers who toil in their tea farms in cold and other inhospitable conditions end up with no financial gain, yet improving their livelihoods through tea earnings is always their goal. He said the national government is paying farmers poorly.
