NAIROBI, Kenya – The Kenya Tea Development Agency (KTDA) has sought to calm growing anxiety among farmers after warning that this year’s final bonus payouts will fall below 2024 levels.
In a statement on Tuesday, KTDA linked the decline to weaker global trading conditions and an unfavorable exchange rate.
The shilling traded at an average of 129 to the US dollar in 2025, compared to 144 in 2024, meaning farmers earned less in local currency despite relatively stable international prices.
The squeeze was felt across major tea-growing regions, with payouts dropping by between Ksh 34 and Sh46 per kilo.
Farmers in East Rift and Kiambu will receive Ksh 371 per kilo, down Ksh 46 from last year, while Murang’a’s rate fell to Ksh 376, Nyeri to Ksh 388, Kirinyaga to Ksh 400, Embu to Ksh 404, and Meru to Ksh 381.
KTDA explained that tea from higher-altitude zones continues to fetch better prices globally, contributing to regional disparities.
Even so, the agency said it is moving to cushion farmers against market volatility.
Plans include diversifying into orthodox teas, which command higher prices in niche markets, promoting value addition, opening new export destinations such as China, and modernizing factories to cut costs.
“Global trading conditions are beyond our control, but we are working with the government and industry stakeholders to secure better returns for farmers,” KTDA said.
The reforms come as Chairman Chege Kirundi’s leadership faces pressure to deliver on its “Farmers First” pledge.
Growers are demanding tangible improvements such as timely supply of inputs and more efficient factory operations.
Kenya is the world’s top exporter of black tea and the second-largest producer after China, but its heavy reliance on bulk sales through the Mombasa auction leaves farmers exposed to price swings.
