The Kenya Tea Development Agency (KTDA) will declare the annual bonuses for small-scale tea farmers next Tuesday.
The payment also referred to as the second payment, has been eagerly awaited by the 680,000 small-scale tea growers, who supply their green leaf to KTDA-managed factories.
Initially, the payout was scheduled for Friday, but the announcement has been postponed to next week.
KTDA Chairman Enos Njeru and his deputy, Erick Cheplwony, confirmed that individual factories will declare payments, which vary depending on the factory's performance over the last financial year.
“Directors of individual KTDA factories are meeting to review the books of accounts and determine the bonus that will be paid to farmers in their regions,” Mr Njeru stated.
Mr Chepkwony noted that the bonus will differ across factories, reflecting how well each factory's processed tea performed in the market.
“The benefits of adhering to high-quality tea-picking practices, like plucking two leaves and a bud, become evident during the bonus season. Farmers who maintained these standards will earn more, while those who didn't will see lower returns due to their tea's market performance,” Mr Chepkwony explained.
He urged farmers to continue following best agronomic practices and maintain high-quality leaf-picking standards to secure premium prices in the market and sustain the tea’s strong presence in export markets.
Directors from KTDA factories have been holding meetings since Monday to finalise their accounts and declare the bonuses.
The last meetings involving directors from Gacharage and Ikumbi factories will be held on Monday, with Njunu and Ngere factories scheduled for September 17.
Once all factories have declared their payments, the KTDA board will release the cumulative payout and publish it in the media. These meetings will culminate in a gathering of all zonal directors and board members from the 54 KTDA factories, where the overall industry performance will be reviewed.
Last year, tea farmers earned Sh44.15 billion in bonuses. A total of Sh67.7 billion was paid out to farmers, with Sh23.55 billion allocated for monthly green leaf payments, compared to Sh62.88 billion paid in 2022. This represented a 7.6 per cent increase in total payments to farmers in 2023 and a 17.6 per cent rise in earnings per kilogram. However, green leaf production dipped by 9 per cent in the same period.
In 2023, Kenya’s tea sector contributed Sh140 billion to the economy, up from Sh138 billion in 2022 and Sh136 billion in 2021.
KTDA calculates bonuses based on a factory’s total earnings from tea sales over the past 12 months. After deducting operational and overhead costs, the remaining earnings per kilogram are determined.
The amount already paid to farmers as monthly green leaf payments is deducted, and the balance is then multiplied by the total kilograms of green leaf supplied by each farmer over the year. This sum is paid out as a bonus, which is typically declared in September and paid with monthly payments in October.
This year’s production is expected to be higher due to increased rainfall in the first half of the year and the government’s fertilizer subsidy program, which reduced the cost of fertilizer from an average of Sh6,500 to Sh2,500.
Meanwhile, farmers supplying green leaf to the Motigo tea factory in Bomet County have boycotted plucking in a push to separate their accounts from those of the parent Kapkoros tea factory.
For the second consecutive day, the factory remained closed due to a lack of green leaves to process. Maintenance work is currently being carried out on the factory’s equipment and trucks.
“The farmers want to be paid bonuses independently of the sister factories – Kapkoros, Tirgaga, and Olenguruone – because their high-quality produce has fetched better prices in the market,” said Mugango Zonal Director Benard Koech.
Mr Koech, supported by Tegat-Chemaner Zonal Director, Simeon Mutai, said farmers have vowed not to resume plucking green leaves until their demands are met.
Two Members of the Bomet County Assembly, Mr Benard Langat Makiche (Kembu) and Peter Moset Langat (Merigi) have voiced their support for the farmers’ demands.
They urged the KTDA to separate the financial accounts of the factories, arguing that factories producing lower-quality tea should not benefit from those that adhere to high standards.
