This archive report was first published on 16 September 2019.
Published on September 16, 2019, Kenya Tea Development Agency (KTDA) has announced a 30% decline in bonus payments for small-scale tea farmers due to a glut in the market.
KTDA Chairman Peter Kanyago attributed the decline to low prices for tea locally and internationally, which have been the lowest in 10 years.
Speaking during the ASK Show in Kabiruini Showgrounds in Nyeri County, Kanyago said, "The bonus will be lower than what was paid last year. Tea prices worldwide have been on the decline."
He added that most tea producers have struggled to manage their costs, leading to low returns for multinational tea companies and small-scale farmers.
Political and economic instability in major tea-buying countries, including Pakistan and Egypt, have also affected demand for Kenyan tea.
KTDA is now focusing on new production lines in 10 factories to produce orthodox tea, which has the potential to fetch higher prices.
"Each of these factories will produce at least 2.5 million kilos of orthodox tea," Kanyago said.
He noted that the prices for orthodox tea are slightly higher compared to traditional black tea, and that is why KTDA intends to increase the number of factories producing orthodox tea from 10 to 20 by the end of the year.
