Tea farmers get Sh3 billion bonus due to better quality

Reforms in the tea sector and production of improved tea quality have seen this year’s bonus increase by Sh1.2 billion, Kenya Tea Development Agency has said.

KTDA chairman David Ichoho said that unlike last year where farmers pocketed Sh1.8 billion  in mini bonus, this year the amount has  increased to Sh3 billion.

Ichoho said that the over 400,000 farmers in all KTDA-managed factories will further receive Sh3 billion monthly payment before April 5 to foot their bills.

During the official opening of Ndarugu Tea Factory in Gatundu South, Kiambu, Ichoho revealed that besides improved quality and reduced costs of production, Kenya has improved its tea market networks.

He said it was a move that will better farmers’ returns going forward.

He said that the war between Russia and Ukraine has slightly affected tea sales but maintained that Kenya has other markets in Pakistan and Sudan.

He regretted that the ongoing war saw eight ordered tea containers from the country returned and a store for one of the Kenyan customers in Russia destroyed.

He assured that the agency is working hard to standardise payments for the benefit of all farmers.

“We have set a minimum reserve price which has increased auction prices from an average of 2.33 USD(Sh266) per kilogram in the month of July last year to USD 2.97(Sh339) by December," he said.

"This will translate to a revenue increase of about Sh13 billion within six months. This was done to cushion our farmers from the declining tea earnings.” 

Ichoho said that the reserve price further increased export earnings from Sh120 billion in 2020 to Sh136 billion last year with projections to hit Sh150 billion this year.

Agriculture Cabinet Secretary Peter Munya announced that unlike other years, farmers will this year receive their full bonus payments before the end of July.

“This is in line with the tea reforms introduced in the Tea Act 2020 which made provisions for balance due to the tea grower to be fully remitted within three months of the end of financial year," Munya said.

"The bonus is projected to be the highest  paid to tea farmers across the tea growing counties since 2016.” 

He urged politicians to desist from politicising increased fertiliser prices saying that the market is controlled by other factors that are beyond the Kenyan government.

The CS said that while Kenya entirely relies on importation of fertilisers, the government is looking for other avenues to mitigate the costs for farmers.

He said the measures include sourcing local materials to set fertiliser manufacturing companies in the country for reduced prices.

Farmers lauded the ongoing reforms saying they have drastically restored their glory.

While decrying that plucking of tea is a task filled with challenges, including braving scorching sun and heavy rains, the farmers expressed optimism that tea prices will increase.

They urged the government to expedite rooting out of cartels that had enslaved them, making opt out.

“We hope the reforms brought to the sector will be fully implemented for the sake of farmers and our country’s economy,"said Rosemary Wangari.

"We are grateful that the cartels which used to enjoy our sweat have been dealt with.”

(Edited by Francis Wadegu)