Tea farmers in Kenya decry bonus decline amid market pressures, regional disparities 

KENYA – Tea farmers across Kenya are grappling with a steep drop in bonus payments for the financial year ending June 30, sparking widespread concern over earnings and market equity.  

According to the Kenya Tea Development Agency’s (KTDA) interim report, smallholder farmers in the 21 tea-growing constituencies earned between Kes 0.80 and Kes 19.10 less per kilo compared to the previous year. 

The 680,000 small-scale growers supplying KTDA’s 77 factories will also face marked disparities in payments.  

According to Business Daily, factories in the East of Rift, mainly in the Mt Kenya region, are expected to pay between Kes 26 (US$0.20) and Kes 57 (US$0.44) per kilo as second payment, popularly known as the bonus. In contrast, their counterparts in the Rift Valley and South Nyanza will receive only Kes 10 (US$0.077) to Kes 32 (US$0.25) per kilo, the lowest rates in recent years. 

Kiru Tea Factory in Murang’a is among the hardest hit, paying Kes 32 per kilo compared with Kes 51.10 (US$0.39) last year. Embu’s Rukuriri Tea Factory leads nationally at Kes 57.50 (US$0.44) per kilogramme, though still down from last year’s Kes 61.50 (US$0.48). At the other end, West of Rift farmers supplying Kiamokama and Rianyamwamu will get only Kes 10 per kilogramme, half of last year’s Kes 20. 

The disparities have angered farmers, with KTDA Zonal Director for Kaptebenget zone, Cheruiyot Baliach, urging reforms to address the longstanding differences. Kericho Governor Erick Mutai called for a second auction in the South Rift to expand markets and reduce regional price gaps. 

Kenya remains the world’s leading exporter of black tea and the second-largest producer after China, but heavy reliance on bulk exports through the Mombasa auction has exposed farmers to price volatility.  

Oversupply in competitor countries such as India and Sri Lanka has depressed auction prices, while economic challenges in major markets including Pakistan, Sudan, Ukraine, and Russia have weakened demand for Kenyan tea. 

Exchange rate fluctuations have also shaped farmer earnings. Although a weaker shilling boosts dollar-denominated revenues in local currency, rising costs of imported farm inputs such as fertilizer offset these gains.  

Shifting rainfall patterns and prolonged dry seasons are further straining production, with experts warning that Kenya’s tea yields could fall by as much as 25 percent by 2050 if current trends persist. 

To counter these challenges, the government has launched Kenya’s first auction for orthodox teas. With 34 licensed factories now producing pure orthodox varieties, the Tea Board of Kenya aims to raise value-added exports from 5 percent to at least 50 percent, increasing returns for farmers and diversifying Kenya’s tea market. 

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