Amid the struggles facing the tea sector, tea farmers and growers have been urged to diversify into other income-generating activities.
Paul Kahiigi, the board chairperson of the Kyamuhunga People’s Savings and Credit Co-operative Society Ltd (KYAPS), said the collapse of the tea industry has left many individuals in the production chain — such as farmers and tea pluckers — stranded.
He said in tea-growing areas, the downturn in the industry has severely impacted household incomes.
“This situation has hurt businesses, and we are now hesitant to offer support, particularly loans, as their only source of income has been severely affected,” Kahiigi said.
He made these remarks on Friday during the institution’s annual general meeting at Kyamuhunga Catholic Parish in Kyamuhunga town council, Bushenyi district.
However, Kahiigi said they are working to encourage people to move away from relying on a single source of income and instead explore other agricultural activities. In Bushenyi, particularly in Kyamuhunga and neighbouring sub-counties such as Ruhumuro, Nyabubare, and Bitooma, large portions of land were previously dedicated to tea cultivation.
This led to the establishment of eight tea processing factories in the area. Unfortunately, the price of green tea leaves has dropped significantly, from sh500 per kg to about sh200.
As a result, tea pluckers now earn only sh150 per kg, with farmers left with just sh50, which is often spent on buying fertiliser.
Some farmers have been forced to abandon their tea plantations, uproot the tea bushes, or leave the farms to workers and pluckers.
“The collapse of the tea industry has increased costs related to loan recovery, court cases, and provisioning expenses for loans, all of which negatively affect our profitability,” Kahiigi said.
In response to Kahiigi’s call for diversification, Harriet Muheebwa, a tea farmer, said: “Yes, we are willing to diversify into other food and cash crops. However, uprooting the tea plantations now requires a significant investment, which many of us do not have as farmers.” Muheebwa further said even after uprooting the tea, the soil requires considerable inputs, particularly organic manure, to make it suitable for growing other crops.
John Bosco Atwijukire, the general manager of KYAPS, noted that the decline of the tea industry has affected their operations in tea-growing areas such as Kihiihi in Kanungu district, Mitooma, and Mwenge.
“We appeal to President Yoweri Museveni to help address the situation. Many Ugandans in tea-growing areas may soon struggle to send their children to school due to the lack of school fees,” he said.
Atwijukire added: “Leaders at all levels must step in and offer solutions to provide hope and counsel to people in the tea industry,” while also acknowledging that it is currently difficult to mobilise people to save.
Despite the challenges, Atwijukire said the SACCOS has managed to grow, earning a profit of approximately sh1.9b.
“Our target was sh3.1b, but due to the prevailing conditions in the tea industry, we couldn’t meet this target,” he explained.
Impact of climate change
Kahiigi also highlighted that climate change, which has led to unpredictable weather patterns and natural disasters, has affected agricultural production and harvests.
Atwijukire elaborated on the efforts to sensitise members on environmental conservation and protection, even tagging a tree for every loan taken.
Government support
Atwijukire praised the Government, especially for the corporation tax waiver.
He shared: “By 2024, we would have paid approximately sh509m in corporation tax. Since 2017, we have saved this money, which now exceeds sh3b. This support from the Government has been vital.”
During the annual general meeting, Robert Mpakibi, the assistant commissioner for cooperatives, congratulated KYAPS for its significant impact on the cooperative movement and its 52,000 members since its inception in 1998.
Mpakibi urged KYAPS to open its doors to the Parish Development Model and Emyooga SACCOS to help them understand how cooperatives can grow.
“In the cooperative movement, there is no competition, so helping PDM and Emyooga SACCOS grow benefits everyone,” he said.
What farmers say
Joseph Bahame, a tea farmer, suggested that the Government could assist tea farmers by providing free inputs, especially fertiliser, to help maintain the gardens until the market stabilises.
“The Government should not let farmers abandon their tea gardens as it happened during the Idi Amin era,” he said.
Africano Bakaihahwenki, the director of Swazi Highland Tea Factory, appealed to the Government to support tea factories, particularly in covering operational costs, such as power bills and worker wages.
“Several factories have already closed, and more are likely to follow. Some of us are operating under difficult conditions,” he stated.
Kyamuhunga town council mayor Moses Bikanya attributed the troubles in the tea industry to a lack of proper regulations.
LEAD PHOTO CAPTION: Kahiigi (left) presents a gift to Mpakibi during the annual general meeting on Friday at Kyamuhunga Catholic Parish in Bushenyi district. (Photo by Chris Mugasha)
