NAIROBI, Kenya – Smallholder tea farmers across Kenya will receive their final payment for the 2024/2025 financial year by October 15, the Kenya Tea Development Agency (KTDA) has announced.
In a notice issued on Tuesday, KTDA said the payouts follow the conclusion of audits for the financial year and the declaration of final green leaf payments by individual factory boards.
The funds will be credited directly to farmers’ bank accounts alongside proceeds for green leaf deliveries made in September 2025.
“Following the conclusion of the Financial Year 2024/25 accounts and subsequent declaration of the final green leaf payment by the respective factory Boards of Directors, the same shall be released to the farmers’ respective banks not later than 15th October 2025,” KTDA said in a statement.
The agency confirmed that the payment will include Sh2.7 billion recovered from Imperial Bank and Chase Bank, which have been under liquidation for years.
The Kenya Deposit Insurance Corporation (KDIC) recently released the funds following government intervention.
KTDA commended the government for facilitating the recovery of the funds, which had been locked up since the two banks collapsed.
President William Ruto, who presided over the release of the money at State House last month, directed that the funds be channeled directly to farmers.
Agriculture Permanent Secretary Paul Ronoh also instructed KTDA to ensure the recovered amount is reflected in farmers’ payslips as part of their 2024/25 bonuses under the label “GoK Refund.”
“You are hereby required to ensure that the funds are paid equitably to farmers and reflected in their payslips as GoK Refund,” Dr. Ronoh said in a directive to KTDA Chief Executive Officer Wilson Muthaura.
KTDA said farmers will be able to view details of their payments through official payslips and the KTDA mobile app, a move aimed at enhancing transparency and accountability.
The announcement offers some relief to smallholder farmers, many of whom have raised concerns over lower earnings this year.
Some factories in Bomet recorded the lowest payouts in the country — with Mogogosiek farmers earning Sh12 per kilogram, and Kapkoros and Kapset at Sh13 per kilogram.
KTDA, however, defended the decline, noting that it reflected a broader market downturn rather than a regional disparity.
According to the agency, the average factory price per kilogram dropped across all major tea-growing regions: East Rift and Kiambu recorded Sh371 per kilo (down Sh46 from last year), Murang’a Sh376 (down Sh42), Nyeri Sh388 (down Sh42), Kirinyaga Sh400 (down Sh38), Embu Sh404 (down Sh34), and Meru Sh381 (down Sh46).
Despite the dip, KTDA expressed optimism that the inclusion of the recovered bank funds and stable global demand will help cushion farmers as the next financial year begins.
