Why Kenyan tea farmers face lower bonuses this year
By Kenneth Mwenda, September 28, 2025Kenyan tea farmers are bracing for lower bonuses this year, as early reports indicate a sharp drop in payments across the country. The news has raised concern among smallholder farmers, who rely on tea sales for their livelihoods.
According to the Kenya Tea Development Agency (KTDA), interim figures for the financial year ending June 30, 2025 show that farmers in the 21 tea-growing constituencies earned between Ksh0.80 and Ksh19.10 less per kilogram compared to 2024.
The decline is not uniform. Farmers supplying factories in the East of the Rift Valley, mainly in the Mt Kenya region, are expected to receive between Ksh26 and Ksh57 per kilo as second payments, known locally as bonuses.
By contrast, growers in the Rift Valley and South Nyanza face much lower rates, ranging from Ksh10 to Ksh32 per kilo. For example, Kiru Tea Factory in Murang’a will pay Ksh32 per kilo, down from Ksh51.10 last year, while Embu’s Rukuri Tea Factory will pay Ksh57.50, a Ksh4 drop from 2024.
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Farmers supplying Kiamokama and Rianyamwamu factories will get only Ksh10 per kilo, half of last year’s Ksh20. Nyamache and Itumbe suppliers face similar cuts, earning Ksh11 instead of Ksh20. These disparities have angered many farmers, who accuse the industry of perpetuating unfair practices.
Factors behind the drop in tea bonuses
Experts attribute the decline in earnings to both global and local factors. Kenya remains the world’s second-largest producer of black tea and the leading exporter, but its dependence on bulk sales through the Mombasa auction makes farmers vulnerable to market fluctuations.
Oversupply in competitor countries, such as India and Sri Lanka, has reduced auction prices. At the same time, economic challenges in major import markets, including Pakistan, Sudan, Ukraine, and Russia, have weakened demand.
The local currency also affects earnings. Tea is traded in US dollars, so a weaker shilling can increase local returns. However, rising costs of imported farm inputs, particularly fertiliser, have offset this benefit. The government has subsidised fertiliser, reducing prices from Ksh3,400 to Ksh2,500 per 50kg bag, providing some relief to farmers.
Climate change adds another layer of risk. Shifting rainfall patterns and longer dry seasons are already affecting production, with experts warning that Kenya’s tea yields could drop by up to 25 per cent by 2050 if current trends continue.