NAIROBI, Kenya – Small-scale tea farmers who supply their green leaves to KTDA-managed factories are set to learn their annual bonus payout rates this week as factory directors hold critical meetings.
These sessions, scheduled from September 9 to 17, will determine the final bonus payments after directors review and approve audited financial accounts for the year ending June 2024.
Farmers receive two main payments each year: an initial mini-bonus followed by the larger, final bonus.
This week’s meetings are key, as the Kenya Tea Development Agency (KTDA) is expected to formally declare the payouts soon after.
According to President William Ruto, farmers may earn a record-breaking Sh70 per kilo in bonuses this year, thanks to government-led interventions that boosted total earnings by Sh30 billion.
Last year, KTDA paid out Sh180 billion in bonuses, up from Sh114 billion in 2022, reflecting the volatility in the sector.
Bonus rates differ depending on each factory’s income, the quality of tea delivered, production costs, and market prices.
Currently, KTDA farmers receive Sh21.5 per kilo for green leaves, which is Sh1.5 higher than last year’s rate, though still lower than private factories, which pay between Sh23 and Sh27 per kilo monthly.
Despite the lower monthly rate, many farmers stick with KTDA for the larger bonuses, as private factories typically do not offer similar payouts.
However, private players have increasingly penetrated regions west of the Rift Valley, vying for a larger share of the market.
Kenya’s tea industry hit record highs in 2023, with export earnings reaching Sh180.57 billion, up from Sh138.09 billion in 2022.
Domestic sales generated an additional Sh16.4 billion, pushing the total market value to Sh196.97 billion.
The Tea Board of Kenya’s performance highlights show a 16% rise in export volume, marking a stellar year for the sector.
These sessions, scheduled from September 9 to 17, will determine the final bonus payments after directors review and approve audited financial accounts for the year ending June 2024.
Farmers receive two main payments each year: an initial mini-bonus followed by the larger, final bonus.
This week’s meetings are key, as the Kenya Tea Development Agency (KTDA) is expected to formally declare the payouts soon after.
According to President William Ruto, farmers may earn a record-breaking Sh70 per kilo in bonuses this year, thanks to government-led interventions that boosted total earnings by Sh30 billion.
Last year, KTDA paid out Sh180 billion in bonuses, up from Sh114 billion in 2022, reflecting the volatility in the sector.
Bonus rates differ depending on each factory’s income, the quality of tea delivered, production costs, and market prices.
Currently, KTDA farmers receive Sh21.5 per kilo for green leaves, which is Sh1.5 higher than last year’s rate, though still lower than private factories, which pay between Sh23 and Sh27 per kilo monthly.
Despite the lower monthly rate, many farmers stick with KTDA for the larger bonuses, as private factories typically do not offer similar payouts.
However, private players have increasingly penetrated regions west of the Rift Valley, vying for a larger share of the market.
Kenya’s tea industry hit record highs in 2023, with export earnings reaching Sh180.57 billion, up from Sh138.09 billion in 2022.
Domestic sales generated an additional Sh16.4 billion, pushing the total market value to Sh196.97 billion.
The Tea Board of Kenya’s performance highlights show a 16% rise in export volume, marking a stellar year for the sector.
