David Bahati addresing the Press on saturday flanked with Frank Byaruhanga the tea farmers chairperson
The government has finally yielded to pressure and agreed to back a Shs 143 billion debt to tea nursery bed operators in Ankole and Kigezi.
Government signed an agreement with the bed operators to affect their payments in phases over the financial year 2021-2022.
David Bahati the State Minister of planning says government will pay the money in two phases, that is Shs 15billion in 2020/21 and the rest in financial year 2021/22.
He says government has been negotiating with the nursery tea operators and that subsequently, President Museveni has directed cabinet that the matter be resolved.
The farmers were also asked to withdraw the case they had filed against government.
“The first 15 billion will be paid in the last quarter of this financial year, that is Shs 7billion in February and 8billion in April,” Bahati said.
The minister also expressed government’s resolve to invest more in the tea industry in the Kigezi sub region in order to boost household income.
He made these remarks on Saturday while addressing the Press in Kabale.