The Kenya Tea Development Agency (KTDA) has proposed a review of monthly tea payments, recommending that tea farmers receive up to Ksh30 per kilogram in monthly earnings, as pressure mounts over declining incomes in the sector.
In a statement released on Thursday, January 22, KTDA said tea factories across the country should align with the new recommended ceiling for monthly tea payments, while taking into account their individual cash flows and existing financial obligations.
KTDA noted that while the proposed rate sets a maximum, implementation will vary from factory to factory depending on financial capacity.
Monthly tea payments to vary by region
According to the agency, tea factories located west of the Rift Valley including Kericho, Bomet, Nandi, Kisii, Nyamira, Kakamega, Vihiga, Bungoma and parts of Nakuru may adjust monthly tea payments to a maximum of Ksh26.
In contrast, factories east of the Rift Valley, covering Kiambu, Murang’a, Nyeri, Kirinyaga, Embu, Tharaka-Nithi and Meru counties, may raise monthly tea payments to Ksh30, reflecting relatively stronger cash positions in those regions.
“KTDA-managed tea factory companies have commenced the review of monthly payment rates to ensure compliance with applicable legal requirements and board guidance,” the agency said.
However, KTDA was quick to clarify that decisions on monthly tea payments, including the final amounts payable to farmers, remain the responsibility of individual factory boards.
“The decision to revise monthly payments, including the final amounts payable, rests entirely with individual factory boards,” the agency stated.
The proposal comes at a tense moment for the tea sector, with farmers openly criticising KTDA over what they describe as long-standing mismanagement, favoritism and declining returns.
Last year, frustration peaked after bonus payments reportedly dropped sharply from about Ksh80 per kilogram to nearly Ksh12 per kilogram in the 2024/2025 period, intensifying calls for the dissolution of the agency’s management.
Farmers have also raised concerns over mounting debts, saying earnings are often eroded by automatic loan deductions from banks and SACCOs, leaving little or no take-home income despite regular monthly tea payments.
More recently, growers accused KTDA of using farmers’ funds as collateral for loans in ways they argue worked against their interests.
In response to the uproar, Agriculture Principal Secretary Paul Ronoh issued a directive banning the use of farmers’ funds as loan collateral, saying the move was necessary to restore trust in both the ministry and KTDA.
“The use of farmers’ funds as loan collateral should stop immediately because this is fraud. I have told KTDA to shape up or shape out. This is the time to make KTDA work,” Ronoh said.
As scrutiny on the agency intensifies, tea farmers will be watching closely to see whether the proposed changes to monthly tea payments translate into meaningful relief on the ground.
