The Kenya Tea Development Agency (KTDA) has moved to address concerns raised by farmers and the public regarding this year’s tea second payment (popularly known as bonus) across the country.
According to KTDA, the drop in earnings is mainly attributed to international market conditions and currency exchange movements that were less favourable compared to last year.
For instance in 2024, the Kenya Shilling traded at an average of KSh144 to the US dollar, while in 2025 the average was KSh129. The Agency says that this weaker exchange rate meant that even where international prices were stable, the amount realized in Kenya Shillings was significantly lower.
Data from the Agency shows average made tea prices across regions reflect this challenge. In the East of Rift, Kiambu fetched KSh371 per kilo, a drop of 46 shillings from last year; Murang’a earned KSh376, down by 42 shillings; Nyeri earned KSh388, down by 42; Kirinyaga earned KSh400, down by 38; Embu earned KSh404, down by 34; and Meru earned KSh381, down by 46.
In the West of Rift, Kericho earned KSh245, a drop of 101 shillings; Bomet earned KSh209, a drop of 85; Nyamira earned KSh266, a drop of 106; Kisii earned KSh246, a drop of 95; and Nandi/Vihiga earned KSh208, a drop of 66.
“These are prices for made tea, and when converted to green leaf using the 4.4 ratio, they explain the reduced farmer playouts across the board,” KTDA says in a statement dated Tuesday, September 30. “Differences in second payment between East and West of the Rift are due to quality factors, market dynamics, and cost structures. Teas from certain high-altitude zones naturally fetch better prices because of quality attributes favored in global markets.”
On the other hand, some factories were harder hit by suppressed global demand, and operational costs further reducing net earnings. Independent producers and plantation companies in the West of Rift, outside KTDA, have reported similar difficulties. KTDA says this confirms that these disparities are market-driven and not unique to KTDA-managed factories.
‘Don’t politicise tea’
“It is important that tea is not politicized. Bringing politics into factory operations only harms farmers. The surest way to safeguard incomes is through maintaining high quality green leaf, disciplined factory management, and adherence to good agricultural practices,” KTDA pleads.
From the gross revenues earned this year, KTDA says it has already factored the monthly payments remitted to farmers and the operational costs covering processing, marketing, and logistics. The final payment, the Agency posits, is therefore the balance after these obligations.
“While understandably disappointing to many, this year’s final is a direct reflection of global trading conditions beyond KTDA’s control.”
KTDA is since taking steps to stabilize farmer incomes by expanding production of orthodox teas, which fetch higher prices in niche markets, to reduce reliance on CTC teas.
“We are also working with the government to promote value addition, reduce packaging costs, and open new markets including China. Additionally, we are investing in factory modernization and energy solutions to cut costs and improve competitiveness.
“We assure our tea farmers that KTDA remains committed to their welfare and to ensuring the long-term sustainability of the sector. The challenges we face are global and systemic, but by focusing on quality, efficiency, and innovation together, we will overcome them and secure better earnings in the future.”
