This archive report was first published on 2 October 2021.
On October 2, 2021, tea farmers in Kenya were facing a challenging situation as they prepared to receive their bonus payouts under the new structure introduced by the government.
The Kenya Tea Development Agency (KTDA) board had hinted at releasing Sh20 billion to be shared by farmers affiliated to 69 tea factories, a significant decrease from the Sh27.62 billion released the previous year.
According to the KTDA, the payment structure for the bonus payouts varied across different factories, with some paying as low as Sh17.50 per kilogramme. For instance, Kanyenya-ini farmers were set to receive Sh17.50, while Njunu farmers would get Sh22 per kilogramme.
However, some factories were paying higher bonuses, with Ikumbi farmers set to receive Sh25 per kilogramme. The chairman of the Tea Lobby Sector, Irungu Nyakera, expressed optimism that the price of tea would improve following the new structure set by the government.
Mr. Nyakera attributed the introduction of the reserve price at the auction as a major boost to lock out cartels that had been causing confusion in the market, leading to low prices.
"We are through with the first hurdle and growers participated in a fair election, as the rule of the law demands, unlike in the past where the KTDA dictated the directors to be elected," said Nyakera.
Despite the low bonus payouts, some factory chairmen remained optimistic about the future. Gatunguru Factory Chairman Samson Mwangi Kaguma stated that farmers would get Sh18 per kilogramme, noting there was hope for better returns next year.
