KTDA factories set to announce second payments

KENYA – Directors of Kenya Tea Development Agency (KTDA)-managed factories are expected to announce the second tea bonus payments for the 2025/26 financial year early next month. 

Factory boards and KTDA Management Services are expected to review financial documentation before declaring the payments, with meetings scheduled toward the end of the month. 

Farmers delivered 1.0947 billion kilogrammes of green leaf during the first 11 months of the financial year, down from 1.1444 billion kilogrammes during the corresponding period of 2024/25. 

Last year, Rukuriri Tea Factory recorded the highest bonus at Kes 57.50 per kilogramme, followed by Mununga at Kes 57, Gathuthi and Imenti at Kes 56 each, and Ngere at Kes 53.10. 

Financial experts said factory directors are expected to consider revenue from tea sold through direct sales and the Mombasa Tea Auction, alongside annual expenditure and other costs, when determining the payments. 

One factory chairman confirmed that boards would meet before the end of the month to review the figures. 

“At the end of the month, the factory boards are expected to hold meetings in their respective areas and declare bonus payments,” the chairman told The Standard. 

Tea value-chain expert Peter Karomo said the sector faced several challenges during the financial year, including disruptions to shipments and higher petroleum costs. 

Karomo also pointed to the introduction of a 0.8% tea levy on May 1, which he said slowed the absorption of premium teas and led some buyers to shift towards lower-grade teas. 

He said directors subsequently urged buyers to purchase tea at reduced prices amid concerns that unsold stocks could accumulate in warehouses. 

KTDA Calls for Levy Review 

KTDA Holding National Chairman Enos Njeru said farmers had continued supplying quality green leaf despite the challenges affecting the sector. 

“The tea bonus is paid differently depending on the revenue and production costs of each factory,” Njeru said. 

He also said the 0.8% export levy had increased the cost of Kenyan tea, prompting some international buyers to reduce or suspend purchases. 

“We urge the government to reconsider and remove the 0.8 per cent export levy, as it negatively impacts tea farmers by diminishing their expected earnings and bonuses,” Njeru said. 

KTDA has previously said bonus payments are determined by tea prices, volumes, production and operational costs at individual factories. 

Rukuriri led 11 factories that paid bonuses above Sh50 per kilogramme last year, according to The Standard.  

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.