Kenya orders immediate review of tea payments  

KENYA – The Kenyan government has ordered an immediate review of monthly green leaf payments to tea farmers, directing KTDA-managed factories in the West of the Rift to pay a minimum of Kes 26 per kilogram (US$0.17).  

The directive was issued by Agriculture Principal Secretary Paul Rono as part of urgent reforms aimed at restoring fairness and transparency in the tea sector. 

Rono said the review of monthly payments is the most immediate step in ensuring farmers benefit from ongoing reforms, even as broader structural, financial, and governance audits continue across the industry.  

He expressed concern that some factory boards had ignored earlier guidance from the Kenya Tea Development Agency (KTDA) to adjust payments upwards. 

“Last week, KTDA issued a clear directive that factories in the West of the Rift should pay a minimum of Kes 26 per kilo of green leaf,” Rono said. “I have seen some factories go back to Kes 23 (US$0.15). That must stop. They must immediately revert to Kes 26 as we review systems to protect the farmer.” 

He warned that continued underpayment would attract tough sanctions from the government, adding that enforcement of the revised rate is non-negotiable. 

The directive follows an earlier advisory by the KTDA Holdings board, which asked factory boards to consider revised monthly payments of up to Kes 30 per kilogram (US$0.20), depending on each factory’s cash flow position and existing financial obligations. However, resistance has emerged from several regions. 

Earlier this week, KTDA-managed factories in Kericho and Bomet counties, classified as Region Five, announced they would maintain monthly payments at Kes 23 per kilogram after a meeting held at Kapkatet Tea Factory.  

Separately, factories in Nyamira County said they would maintain payments at Kes 24 per kilogram (US$0.16). 

Rono dismissed the explanations provided by the factory boards, insisting that compliance with the revised minimum rate forms the foundation of broader reforms in the tea industry. 

“The farmer must get not less than 70 per cent of the proceeds from the sale of one kilo of tea at the auction. The remaining 30 per cent is for operations,” he said, noting that the Kes 26 rate is only a minimum measure as the government works to better align farmer earnings with auction returns. 

He attributed depressed farmer incomes to a combination of high operational costs and corruption, alleging that malpractice starts at senior management levels and extends to factory clerks responsible for weighing tea deliveries. 

Beyond monthly payments, Rono accused some KTDA directors and brokers of manipulating tea sales by diverting produce from auctions where prices are higher and reselling it to associates at nearly half the value.  

He also criticised the high cost of warehousing tea in Mombasa, saying KTDA-owned facilities charge almost three times more than private warehouses despite being funded by farmers. 

Rono said reforms will continue across the value chain, but stressed that enforcing the Kes 26 monthly payment is the clearest signal yet that the government is serious about restoring dignity and fair earnings to tea farmers in the West of the Rift. 

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