Kenya tea farmers to receive lower 2025/2026 bonuses
KTDA factories have announced lower bonus rates amid weaker green leaf deliveries, higher petroleum costs, shipping disruptions and concerns over the 0.8 per cent export levy.
KENYA – Kenya tea farmers are set to receive lower bonus payments for the 2025/2026 financial year after supplying 1.0947 billion kilogrammes of green leaf during the first 11 months of the period.
KTDA-managed factory directors reviewed green leaf monthly payments, tea sales revenue, electricity bills, management fees, petroleum costs and employee salaries before declaring the bonus rates. Boards considered financial performance before setting payments for farmers this year.
Industry experts said the tea sector faced challenges during the period, including the closure of the Strait of Hormuz, which disrupted shipping routes and increased petroleum costs. They also cited the recently introduced 0.8 per cent export levy as a major challenge for the industry.
KTDA Holding Chairman Enos Njeru said Rukuriri Tea Factory declared a bonus of Kes 50 (US$0.39) per kilogramme, down from Kes 57.50 (US$0.44) paid last year.
“The declaration of the bonus was realised after the factory boards evaluated the performance in the year, focusing on revenue and expenditure,” Njeru said.
He said the export levy had increased the cost of Kenyan tea, prompting some international buyers to reduce or halt purchases.
“We urge the government to remove the 0.8 per cent export levy, as it negatively impacts tea farmers by diminishing their expected earnings and bonuses,” Njeru said.
Mount Kenya factories record declines
Most factories in the Mount Kenya region recorded lower bonus rates. Ngere declared Kes 48 (US$0.37) per kilogramme, down from Kes 53.10 (US$0.41), while Gathuthi paid Kes 45 (US$0.35) compared with Kes 56 (US$0.43) previously.
Gitugi declared Kes 40.50 (US$0.31) per kilogramme, Chinga Kes 36 (US$0.28), Mataara Kes 33.50 (US$0.26), Iriaini Kes 33 and Kiru Kes 31, down from Kes 32.
Momul was among the factories to record an increase, with its bonus rising to Kes 40.50 (US$0.31) per kilogramme from Kes 32.50 (US$0.25) announced in 2025.
Farmers delivered 1.0947 billion kilogrammes of green leaf during the first 11 months of 2025/2026, compared with 1.1444 billion kilogrammes during the corresponding period of 2024/2025.
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