The Kenya Tea Development Agency (KTDA) has unveiled new measures to steady farmers’ earnings after widespread protests over reduced bonuses this year.
In a statement on Tuesday, September 30, KTDA linked the sharp drop in payments to global market shocks and a weaker exchange rate that cut into export earnings.
“The decline in earnings is mainly due to tough international market conditions and unfavourable currency exchange movements,” the agency said. “In 2024, the shilling traded at an average of KSh144 to the dollar, while in 2025 the average was KSh129.”
To cushion farmers, KTDA said it would ramp up the production of orthodox teas varieties processed using traditional methods and in demand in niche markets as a way of reducing overreliance on the common Crush, Tear, Curl (CTC) teas.
The agency also plans to promote value addition, cut packaging costs, and expand market access, including exploring opportunities in China. Investments in factory upgrades and energy solutions are also in the pipeline to lower costs and improve competitiveness.
The announcement follows outrage from farmers, especially in the West of Rift Valley, who were hardest hit by the bonus cuts.
Sharp Declines in Earnings
In Nyamira, farmers were paid KSh266 per kilo, down from KSh372 in 2024. In Kericho, often referred to as Kenya’s tea hub, bonuses dropped to KSh245 from KSh346 per kilo. Similar declines were reported in Bomet, Kisii and Nandi counties.
KTDA explained that variations in payments between East and West of the Rift were influenced by tea quality, cost structures, and market dynamics.
According to the agency, teas grown at higher altitudes tend to fetch better prices internationally due to their quality.
Still, the reduced second payment commonly known as the bonus has raised concern among farmers already struggling with rising production costs. KTDA noted that some factories were hit harder by global demand pressures and high operating costs, reducing overall earnings.
The agency stressed that other independent producers and plantation companies in the West of Rift also faced similar challenges, showing the situation was market-driven and not limited to KTDA factories.
Amid growing anger, KTDA cautioned against politicising the issue.
“Bringing politics into factory operations only harms farmers. The surest way to safeguard incomes is by maintaining high-quality green leaf, disciplined factory management, and good agricultural practices,” the statement added.
