This archive report was first published on 25 June 2021.
Published on June 25, 2021, a report by the Standard highlighted the growing competition between the KTDA and private tea companies for green leaf from local farmers.
One such private company is Kipkebe Tea Company, a subsidiary of Nairobi Securities Exchange-listed agricultural firm Sasini. In 2020, Kipkebe Tea Company outsourced close to 30 million kilos of green tea from local farmers, improving its output and helping it recover from a Sh337 million loss the previous year.
Kipkebe Tea Company Managing Director Silas Njibwakale attributed the company's success to its ability to offer better prices than the KTDA. "The year ended 2020 was the best for farmers because they were paid better than ever before. This has drawn so many of them to our company," he said.
According to Njibwakale, the company offered farmers Sh28 per kilo of green leaf delivered, while the highest-paid KTDA-affiliated farmers received Sh26 per kilo.
For farmers like Jane Nyarinda, who switched to Kipkebe Tea Company, the decision has been a lucrative one. "We are in business. We go where we can get good returns," she said, adding that she earned about Sh50,000 in tea bonus payout from Sasini for the 1,300 kilos of green leaf she delivered to the firm last year.
