The Kenya Tea Development Agency (KTDA) has announced a series of strategic interventions aimed at stabilising earnings, following nationwide outrage from tea farmers over reduced bonuses in 2025.
In a statement on Tuesday, September 30, KTDA attributed the sharp decline to a combination of global market shocks and a weakened exchange rate that slashed the value of export earnings.
"The drop in earnings is mainly attributed to international market conditions and currency exchange movements that were less favourable compared to last year. In 2024, the Kenyan shilling traded at an average of KShs 144 to the US dollar, while in 2025 the average was KShs 129," KTDA said.
To curb the emerging worrying trend, KTDA announced plans to expand the production of othordox teas which are essentially tea processed using traditional methods that preserve the leaf's integrity as opposed to the usual Crush, Tear, Curl (CTC) method.
“Looking forward, KTDA is taking steps to stabilize farmer incomes. We are expanding production of orthodox teas, which fetch higher prices in niche markets, to reduce reliance on CTC teas,” KTDA said.
Further, the KTDA announced plans to promote value addition by reducing packaging costs and opening Kenya to broader markets like China.
The statement went on, "Additionally, we are investing in factory modernisation and energy solutions to cut costs and improve competitiveness.”
The announcement came in the wake of uproar from tea farmers, particularly those in the regions of west of Rift Valley, who were arguably the hardest hit by the reduced second payment, commonly referred to as "bonus".
Differences in Payment
In Nyamira, farmers earned Ksh266 per kilo of tea, down from the previous Ksh372 in 2024. Kericho, known as Kenya's 'tea hub', saw farmers receive Ksh245 for a kilo, down from Ksh346. Similar declines were also recorded across Bomet, Kisii and Nandi.
In the statement on Tuesday, KTDA explained the differences in payment between East and West of the Rift stemmed from quality of the tea, market dynamics and cost structures.
According to the agency, teas from zones of high altitude naturally fetch higher prices due to their quality attributes, which are favoured in global markets.
The bonus is a critical income stream for small-scale farmers, and its decline has raised alarm, particularly because farmers are already grappling with rising production costs.
KTDA also noted that some factories were harder hit by suppressed global demand and operational costs, which effectively reduced their net earnings.=
The agency emphasized that independent producers and plantation companies in the West of Rift outside KTDA reported similar difficulties, confirming the disparities were “market-driven and not unique to KTDA-managed factories.”
Amid outrage from farmers, KTDA also fired a warning against politicising the issue, which the agency claims was not unique to some farmers.
“Bringing politics into factory operations only harms farmers. The surest way to safeguard incomes is through maintaining high-quality green leaf, disciplined factory management, and adherence to good agricultural practices,” KTDA added.
