NAIROBI, Kenya — Tea farmers across the country are set for a financial boost after the government ordered the Kenya Tea Development Agency (KTDA) to release Sh2.7 billion recovered from two collapsed banks.
The directive, issued by Agriculture Principal Secretary Dr. Kipronoh Ronoh, comes as a major relief to smallholder farmers reeling from low bonus payments announced for the 2024–2025 financial year.
In a letter to KTDA Chief Executive Officer Wilson Muthaura, Dr. Ronoh instructed the agency to ensure that the recovered funds are disbursed equitably and reflected in farmers’ payment slips as a Government of Kenya refund.
“You are hereby required to ensure that the funds are paid equitably to farmers and reflected in their payslips as GoK Refund,” the PS said in the directive.
The money was released by the Kenya Deposit Insurance Corporation (KDIC) following the intervention of President William Ruto, who officiated the recovery on September 11, 2025, and directed that the funds be remitted to farmers.
The payout is expected to cushion thousands of growers—particularly in West of Rift regions—who have protested over declining earnings despite rising production costs and shrinking international tea prices. Some farmers have even resorted to uprooting their tea bushes in frustration.
Sector Reforms and Accountability
Dr. Ronoh outlined ongoing government measures to revive the tea industry, including:
- Distribution of subsidised fertiliser;
- Removal of VAT on tea and packaging materials to promote value addition;
- Support for factory modernisation; and
- Efforts to expand international markets for Kenyan tea.
However, he also challenged KTDA to confront internal inefficiencies blamed for the low farmer bonuses.
“The low bonuses are largely due to high factory operation costs, poor governance, and malpractices. KTDA should reform itself to lower production costs and enhance transparency,” he said.
The Sh2.7 billion refund is expected to appear in farmers’ October payslips. Copies of the directive were sent to Agriculture Cabinet Secretary Mutahi Kagwe, KTDA Chairman Chege Kirundi, and Tea Board of Kenya CEO Willy Mutai.
Regional Bonus Disparities
Tea factories in Bomet County recorded some of the lowest bonuses in the country—Mogogosiek (Sh12 per kilo), and Kapkoros and Kapset (Sh13 per kilo).
KTDA has defended the regional disparities, explaining that tea from high-altitude areas such as Nyeri and Kirinyaga generally attracts higher international prices due to superior quality.
In its 2025 report, KTDA said tea from the East Rift and Kiambu fetched Sh371 per kilo, a Sh46 drop from last year, while Murang’a earned Sh376 (down Sh42), Nyeri Sh388 (down Sh42), Kirinyaga Sh400 (down Sh38), Embu Sh404 (down Sh34), and Meru Sh381 (down Sh46).
The agency added that it is expanding production of orthodox teas, which fetch premium prices in niche markets, to reduce overreliance on CTC teas.
