This archive report was first published on 24 August 2021.
On July 1, 2021, the Kenya Tea Development Authority (KTDA) implemented a price hike for tea farmers in regions five, six, and seven, increasing their monthly green leaf payments by between KSh2 and KSh3.
According to the new rates, farmers in region five, covering factories in Kericho and Bomet counties, will now earn KSh20 per kilo of green leaf delivered, up from the previous rate of KSh18.
Similarly, farmers in region six, covering factories in Kisii and Nyamira counties, and region seven, covering Nandi, Trans-Nzoia, and Vihiga counties, will also earn KSh20 per kilo of green leaf, up from the previous rate of KSh17.
This decision follows a similar move by factories in KTDA's regions one to four, which increased their monthly green leaf payment to farmers from KSh16 per kilo to KSh21, starting January 2021.
Meanwhile, multinational firms have announced plans to set a minimum price for their tea at the Mombasa Tea Auction to mitigate losses caused by the low cost of the commodity in the market.
The Kenya Tea Growers Association (KTGA) has written to the East African Tea Traders Association (Eatta), informing it of the decision, just a month after the State introduced a reserve price for smallholder farmers.
