Tobacco firms ordered to pay farmers Sh12.25 billion arrears with interest by October 30

What you need to know:

  • The meeting further agreed that farmers should join agricultural insurance schemes to protect themselves against potential losses from natural disasters.

Tabora. Tobacco-buying companies that delayed payments to farmers for the previous agricultural season have been ordered to clear all outstanding dues by October 30, 2025.

The firms owe farmers more than $5 million (about Sh12.25 billion) for last season’s crop and have also been instructed to include interest as compensation for the delay.

The directive was issued on Thursday, October 9, 2025, by Agriculture Minister Hussein Mohamed Bashe during a meeting with cooperative leaders, bankers, and tobacco buyers at Chem Chem Ward in Tabora Municipality.

“I am giving you 21 days, until the 30th of this month. I don’t want to hear of any farmer complaining about unpaid dues. Let’s not provoke one another. It is unacceptable that a new farming season starts while farmers are still waiting for payments from the previous one,” said Mr Bashe.

He also directed the companies to submit written explanations to the police outlining the reasons for the delay and to provide clear payment schedules to ensure all dues are settled before the end of the month.

“Submit statements to the nearest police station explaining why farmers have not been paid despite collecting their tobacco long ago,” he emphasised.

On farmer registration, the minister directed tobacco buyers and financial institutions, in collaboration with the government, to enrol all growers in a central digital database.

The system will record details such as farm size, crop type, and production levels to promote nationwide transparency.

“Registering farmers individually through cooperatives will help curb theft, smuggling, and adulteration of tobacco. It will also make it easier to trace production and compensate farmers when challenges arise,” said Mr Bashe.

He warned that any company failing to participate in the registration exercise would not be licensed to purchase tobacco in the next farming season.

Tabora Regional Commissioner, Mr Paul Chacha, also ordered companies with outstanding debts to report to the police until all payments are cleared.

“They must continue reporting here until they have paid everything. These companies have been a constant source of trouble, and this is not the time to inconvenience our farmers,” said Mr Chacha.

The meeting further agreed that farmers should join agricultural insurance schemes to protect themselves against potential losses from natural disasters.

Participants also resolved that tobacco prices would not be reduced, reaffirming the government’s commitment to ensuring farmers earn fair returns from their labour.

Speaking on behalf of the farmers, Mr Onesmo Ngonyani, a tobacco grower, welcomed the registration initiative, saying it would protect farmers from exploitation by unauthorised middlemen.

“Some traders buy our tobacco at unfairly low prices and store it in warehouses because they have more capital. We end up waiting helplessly, and others even smuggle it, leaving us to bear the losses,” he said.