KTDA keeps Region Five green leaf tea payments unchanged, citing weak cash flows and challenging global market conditions.

KENYA – The Kenya Tea Development Agency (KTDA) has maintained the green leaf tea price for Region Five—comprising Kericho and Bomet counties—at Kes 23 per kilogram (US$0.18), following a review of factory finances.
In a statement issued on February 4, 2026, KTDA said the decision was reached after a meeting of factory boards held at Kapkatet Tea Factory. The agency noted that the resolution was based on the current financial position of factories in the region.
“After reviewing the financial position of factories in Region Five, namely Kericho and Bomet counties, the factory boards, in a meeting held at Kapkatet Tea Factory, resolved to maintain the current monthly payment rate of Kes 23 per kilogram of green leaf,” the statement read.
KTDA said the boards observed that low tea absorption and weak prices realised during the 2024/2025 financial year had negatively affected factory cash flows.
The agency added that reduced tea volumes in factories had further constrained earnings, prompting an appeal to farmers to continue supplying green leaf to benefit from improved returns expected in the coming months.
According to KTDA, the factory boards agreed to review and consider an increase in the monthly green leaf payment once the financial position of the factories improves.
The leadership, led by regional board members and factory chairpersons, committed to working towards reversing the low earnings recorded in the previous year.
The boards also urged farmers to maintain high plucking standards to enhance tea quality and improve prices at the auction. KTDA noted that better quality tea remains critical to achieving stronger market performance.
Earlier this year, KTDA issued a directive encouraging tea factory boards to raise green leaf prices to boost farmer incomes.
Under the directive, prices paid to farmers supplying KTDA’s 54 factories were increased to between Kes 26 and Kes 30 per kilogram (US$0.20 to $0.23), depending on the zone.
However, KTDA clarified that the increases were not mandatory. “The increase was not absolute and is subject to each factory’s cash flow position and existing financial obligations,” the agency said, adding that “the decision to revise monthly payments, including the final amounts payable, rests entirely with individual factory boards.”
The agency acknowledged that prolonged low tea prices had previously triggered unrest among farmers, who called for government intervention to stabilise the sector.
KTDA attributed reduced earnings to a slump in global tea prices, delayed fertiliser distribution, depressed rainfall, unfavourable exchange rates, and the loss of key export markets such as Iran and Sudan due to geopolitical tensions.
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