Death, chaos as tea farmers protest poor bonus pay
Tea farmers from Micimikuru factory protest Sh35 bonus payout declared by the board on September 13, 2024. The factory had paid Sh47 in second payment last year.
What you need to know:
- During the protests, a section of the factory’s 635-acre tea estate was extensively damaged after it was set on fire by unknown people.
- The farmers lamented that their factory is the least paying compared to the neighbouring zone where seven factories declared bonuses of more than Sh50 per kilo.
A wave of unrest triggered by poor tea bonus payments that saw a man killed in Bomet in south Rift on Wednesday spread to Mt Kenya, where hundreds of farmers demonstrated on Thursday.
Police are alleged to have shot dead 28-year-old Robert Chepkwony as they broke up a protest by small-scale tea farmers, who supply produce to the Mogogosiek factory.
Mr Chepkwony, a resident of the area, was reportedly killed on the spot when demonstrators attempted to storm the factory angered by this year’s Sh 20 per kilogram bonus rate, a decrease from last year’s Sh 30.
The body was taken to Kapkatet Hospital mortuary even as two people – among scores injured in the skirmishes- were hospitalised at Kapkatet and AIC Litein in neighboring Kericho.
On Thursday, hundreds of farmers accredited to the Thumaita tea factory in Kirinyaga, marched in Kamugunda town to protest poor bonus payment.
The farmers boycotted tea picking dissatisfied with the Sh46 per kilogram rate.
"We were promised that we would be paid Sh60 per kilogram, but we were shocked when the factory management announced Sh46," said one of the farmers, Mr Stephen Kaunda.
In Meru, Miciimikuru factory management blamed the collapse of the orthodox tea market for a decline in this year’s second bonus payment.
This is after farmers allied to the factory last Friday protested rejecting the Sh35 per kg paydown from Sh47 last year.
During the protests, a section of the factory’s 635-acre tea estate was extensively damaged after it was set on fire by unknown people.
Orthodox tea
The farmers lamented that their factory is the least paying compared to the neighbouring zone where seven factories declared bonuses of more than Sh50 per kilo.
The Imenti factory declared Sh60.30, Githongo Sh56, Kinoro Sh55, Kionyo Sh55, Kiegoi Sh51 and Weru Sh50.50.
While the government has been encouraging factories to diversify into orthodox tea, Micimikuru, one of the pioneers, has not sold their processed tea for a year after the sole local buyer encountered challenges.
Factory board chairman Mr Stephen Kathiri said they paid Sh47 last year due to income from orthodox tea.
“Since last year, we have not sold orthodox tea and are stuck with 786,000 kilos worth Sh353 million at the warehouse. This has negatively affected our cash flows leading to lower pay,” Mr Kathiri said.
He added the factory was selling most of its orthodox tea to Cup of Joe Ltd.
“By the time we stopped processing orthodox tea, we were producing 1.5 million kilos per year. Orthodox tea was fetching up to USD5 per kilo hence making good money for the factory,” Mr Kathiri added.
Mr Kathiri added farmers’ earnings were also hit by ongoing repayment of a Sh183 million loan that was taken by a previous board.
Micimikuru factory board chairman Stephen Kathiri addresses journalists on September 13, 2024. He said the factory recorded a decline in bonus payout due to collapse of orthodox tea market.
“The loan was taken in dollars and when the dollar appreciated against the shilling, we had to pay very high interest. However, the loan will be completed in February next year,” he said.
However, the farmers accused the board of withholding information on the loan and the state of factory machinery.
Mr Mwenda Mungania, a farmer, said they would not take a bonus lower than last year’s yet they had supplied quality tea.
“We are demanding a special AGM in 14 days to get answers on why our factory is paying the least bonus in the region. If the board cannot give us answers, we will remove them from office,” Mr Mungania said.
Protesters loot
Ms Agnes Nkatha, another farmer, said the directors had promised good pay but delivered the poorest in the region.
“We secured loans hoping to pay with the expected bonus payment. How will we clear our loans with the Sh35 they are offering?” Ms Nkatha asked.
In Bomet on Thursday, there was heavy police deployment at the Mogogosiek factory following reports that some protesters tried to loot the facility’s stores during the demonstration on Wednesday.
On Thursday, Agriculture Principal Secretary Paul Ronoh said the government is aware of the farmers' grievances and is working with the Kenya Tea Development Agency (KTDA) and other stakeholders to address the issues.
“It is unfortunate that we lost one person and had several others injured in what started as a peaceful demonstration. I urge farmers to remain calm as we work through their concerns,” said Mr Ronoh.
Farmers have long been calling for the separation of accounts for satellite factories managed by KTDA, arguing that each factory should have independent financial accountability.
Many believe this would ensure fairer bonus payments tailored to each factory’s specific performance.
The tea industry has faced significant challenges in recent years, with a glut at the Mombasa auction leading to millions of kilograms of unsold tea.
The implementation of the Tea Act 2020, which introduced reserve prices, has been a point of contention.
However, the PS noted that recent government efforts have led to the sale of 45 million kilograms of tea in the past two months, with hopes of selling the remaining 55 million kilograms by the end of the year.
Dr Rono defended discrepancies witnessed in the payment of tea bonuses, saying the rates are based on the quality of tea from each factory.
He insisted companies that maintained high-quality tea in the market received high bonuses.
"We understand there is fury over payment of bonuses, but this is because some are not maintaining good quality. We are asking tea factories to replace old tea processing machines and farmers should pick their leaves every five days compared to the current eight to maintain good quality," said Dr Rono.
Addressing the press on Wednesday together with the Kenya Tea Development Authority (KTDA) board while officially flagging off the transportation of fertilizer for smallholder tea farmers at the Port of Mombasa, the PS said low bonuses were also affected by the huge volume of unsold tea.
"Last year we had more than 100 million kilos of unsold tea, this has affected bonuses to farmers, but we are working to address that," he said.
The PS witnessed the arrival of 47,300 metric tonnes of NPK fertilizer, the first of two shipments totaling 97,000 metric tonnes, and signals the commencement of distributing the vital input to farmers.
The fertilizer, which is being transported to Nairobi county via the Standard Gauge Railway (SGR), will be distributed to farmers through their respective factories ahead of the short rains.
“The cost of one bag of fertilizer (50kg) remains at Ksh2,500. Tea farmers like other farmers will benefit from the subsidy programme which the government has put in place for all farmers in Kenya,” Dr. Rono said.
This shipment is part of the KTDA's broader effort to support over 680,000 smallholder tea farmers by providing high-quality fertilizer at competitive prices. The second consignment is scheduled to follow the course, further bolstering the farmers' readiness for the rainy season.
KTDA chairman Enos Njeru noted that the fertilizer arrival has been delayed by the ships taking a much longer route due to the ongoing conflict on the Red Sea with the second ship expected to arrive in about three weeks.
“I appreciate the efficiency in packaging, transportation, and distribution across the country. Farmers will receive several bags from this shipment as we wait for the second ship,” he said.
This year's procurement of nearly 97,000 metric tonnes marks an increase from last year's 88,000 metric tonnes, reflecting the expansion of smallholder tea acreage and growing demand for KTDA's fertilizer distribution services beyond its traditional network.
The fertilizer, chemically compounded NPK 26:5:5, will be packed in 50kg and 25kg bags.
This bulk procurement, secured through international competitive bidding, enables smallholder farmers to access fertilizer at affordable rates. The KTDA also offers a fertilizer credit scheme, allowing farmers to pay in installments, easing the financial burden of purchasing the farm input.
Applying fertilizer at the start of the short rains is crucial for maintaining the high quality and quantity of green leaves required for premium tea production.
Reporting by Vitalis Kimutai, George Munene, David Muchui and Anthony Kitimo
