Tea farming supports over 680,000 small-scale growers in 21 counties. These farmers supply green leaf to 77 factories run by the Kenya Tea Development Agency (KTDA).
Currently, they are waiting for this year’s annual bonus, which will be announced in two weeks.
The bonus, called the second payment, is a key event in the tea calendar. According to KTDA, factories will release bonus rates between September 22 and 26.
To begin with, West of Rift factories will announce their rates on September 22. These include Mogogsiek, Kobel, Boito, Kapset, Rorok, Kapkoros, Tirgaga, Olenguruine, and Motigo.
After that, Mt. Kenya factories will release their rates on September 26. These include Rukuriri, Mungania, Kathangariri, Nduti, Ikumbi, Njunu, Gacharage, Makomboki, Ngere, Ragati, Iriaini, Chinga, Gitugi, and Gathuti.
In comparison to last year, by June 30, 2024, KTDA paid farmers a record Sh89.29 billion for green leaf. This was Sh21.5 billion higher than the Sh67.7 billion paid in 2023.
Meanwhile, KTDA Holdings Chairperson Chege Kirundi assured farmers that the industry remains stable. He also urged them to deliver high-quality leaves to boost earnings.
However, the sector has faced a glut at the Mombasa Tea Auction. Over 100 million tonnes of tea went unsold for two years. Price caps under the Tea Act, 2020 contributed to this oversupply.
To improve returns, KTDA and government agencies are now promoting specialty teas. Orthodox tea, in particular, has growing demand in Japan, Russia, China, Germany, Iran, and the Middle East.
Traditionally, Kenya’s black CTC tea is sold to Pakistan, the UK, Egypt, and Sudan. Going forward, KTDA plans to target new markets in India, Korea, Australia, South Africa, Ghana, Nigeria, and Morocco.
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