The Kenya Tea Development Agency (KTDA) has addressed concerns raised by farmers and the public regarding this year’s second payment, commonly known as the bonus, across its managed tea factories.

In a press release on Monday, September 30, 2025, the agency explained that the reduction in earnings is largely due to unfavourable international market conditions and shifts in currency exchange rates.

“In 2024, the Kenyan shilling traded at an average of Ksh144 to the US dollar, while in 2025 the average was Ksh129,” the agency stated.

This weaker exchange rate meant that even when international tea prices remained steady, the amount realised in Kenyan shillings was significantly lower.

Regionally made tea prices illustrate this challenge. In the East of Rift, Kiambu recorded Ksh371 per kilo, down 46 shillings from last year. Murang’a earned Ksh376, a drop of 42 shillings, while Nyeri received Ksh388, down by 42. Kirinyaga earned Ksh400, down 38 shillings; Embu Ksh404, down 34; and Meru Ksh381, down 46.

In the west of the Rift, the fall was sharper. Kericho earned Ksh245, down 101 shillings, while Bomet received Ksh209, a drop of 85. Nyamira earned Ksh266, down 106; Kisii Ksh246, down 95; and Nandi/Vihiga Ksh208, down 66. These are prices for made tea. When converted to green leaf using the 4.4 ratio, they explain the reduced payouts across the board.

KTDA clarified that differences in payments between the East and West of Rift arise from quality variations, market dynamics, and cost structures. Teas from high-altitude zones often fetch better prices because of attributes preferred in global markets.

Meanwhile, some factories faced suppressed global demand and higher operational costs, further reducing net earnings. Independent producers and plantation companies outside KTDA in the West of Rift reported similar difficulties, confirming that these issues are market-driven rather than unique to KTDA.

Focus on quality

The agency stressed that tea should not be politicised, as involving politics in factory operations harms farmers. KTDA urged farmers to focus on maintaining high-quality green leaf, disciplined factory management, and adherence to good agricultural practices.

From the gross revenue earned this year, KTDA has already accounted for monthly payments to farmers and operational costs covering processing, marketing, and logistics. The final bonus payment is therefore the balance remaining after these obligations. While disappointing to some, KTDA emphasised that the outcome reflects global trading conditions beyond its control.

Looking ahead, KTDA is taking steps to stabilise farmer incomes. These include expanding orthodox tea production, which commands higher prices in niche markets, reducing reliance on CTC teas, and promoting value addition with government support. The agency is also working to lower packaging costs, open new markets such as China, and invest in factory modernisation and energy efficiency.