By MKT Reporter
Tea farmers across the country are staring at reduced second payments this year, as the Kenya Tea Development Agency (KTDA) blamed falling international earnings and a weaker exchange rate for the dip in bonuses.
KTDA said the average exchange rate in 2024 stood at 144 shillings to the dollar, compared to 129 shillings this year.
This meant that even though global tea prices were largely stable, farmers earned less once revenues were converted into local currency.
The numbers tell the story. In the East of Rift, Kiambu farmers earned KSh371 per kilo of made tea, down KSh46 from last year. Murang’a recorded KSh376, a drop of KSh42; Nyeri KSh388, also down KSh42; Kirinyaga KSh400, down KSh38; Embu KSh404, down KSh34, while Meru recorded KSh381, down with KSh46.
On the other hand, in the West of Rift, the cuts were even deeper. Kericho farmers fetched KSh245 shillings per kilo, a steep fall of KSh101 shillings. Bomet earned KSh209, down KSh85; Nyamira KSh266, down KSh106; Kisii KSh246, down KSh95; while Nandi and Vihiga recorded KSh208, down KSh66. Converted into green leaf prices using the standard 4.4 ratio, these declines explain the reduced farmer payouts across the country.
In a press statement by KTDA’s Corporate Communication department, the agency explained that variations between East and West of the Rift reflect differences in quality, cost structures and global market preferences, with teas from higher-altitude areas fetching better prices. Independent producers and plantations outside KTDA have reported similar drops, underscoring that the slump is driven by global market forces rather than management issues within KTDA.
The agency cautioned against politicising the farmers’ earnings, saying political interference only hurts growers.
It urged farmers to focus on high-quality green leaf and good agricultural practices to safeguard incomes.
The agency noted that the final payment announced a few days ago comes after deducting monthly advances and factory operational costs and while disappointing to many, it mirrors global trading realities.
Looking ahead, the agency said it is investing in diversification and efficiency to cushion farmers.
Plans include expanding production of orthodox teas, which attract better prices in niche markets, working with government to cut packaging costs and open up new markets such as China, and modernising factories with cheaper energy solutions.
“While the challenges are global and systemic, KTDA remains committed to our farmers. Through quality, efficiency and innovation, we will secure better earnings in the future,” the agency said in the statement.
