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KTDA partners with Safaricom to pay tea farmers via Mpesa

20 June 2015, 09:26 Joseph Njung'eh

Nairobi - Tea farmers from 66 factories under the management of the Kenya Tea Development Agency (KTDA) will start receiving their payments via Mpesa.

This has been made possible by a partnership between the tea agency and Safaricom Company which has already started rolling out the payments.

KTDA chief executive officer, Lerionka Tiampati on Friday said the move will boost cash handling in tea factories and reduce the high risks of theft, delay and loss.

He said factories transacting about KES 1 billion yearly through the Factory Door Sales (FDS) channel will now receive payments using the Safaricom mobile money transfer, M-pesa, which will also help reduce security of cash handling at the factories.

While launching the partnership at Kangaita tea factory in Kirinyaga County, Safaricom CEO, Bob Collymore said farmers must embrace the ever-changing technology if they have to realize benefits from the agricultural sector.

Read Also: Nyeri to export coffee, tea directly to Botswana

Collymore said the initiative will transform the entire payment cycle for farmers and KTDA factories.

He said the partnership demonstrates the ability of the service to provide an efficient payment channel for industries.

“Over 54 KTDA factories have already started collecting revenues through M-pesa with positive impact on their operations,” said Collymore.

The remaining 12 factories, he said, will also start using the payment system in the coming months, making KTDA the largest partner with Safaricom.

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