Directors from the Kenya Tea Development Agency (KTDA) Zone 5, covering Kirinyaga County, have attributed the decline in tea bonus payments for the 2024/2025 financial year to the strengthening of the Kenyan shilling against the US dollar.
Speaking on behalf of the zone’s leadership, Ndima Tea Factory Director John Mithamo explained that since tea is traded internationally in dollars, a stronger local currency results in lower returns once the earnings are converted to shillings. This has directly affected the bonus payouts to farmers.
“Last year, the dollar was selling at 160, but this year it is changing to 129, if you look at it, the money must have gone down,” he added.
“Zone 5 has performed well compared to other zones across the country,” Mithamo said, urging politicians to stop using the bonus issue for political gain.
He called on farmers to remain focused and continue delivering high-quality green leaf, noting that Zone 5 factories ranked among the top 15 nationally.
Kimunye Tea Factory Chairperson Simon Njeru echoed the sentiments, encouraging farmers to compare bonus rates across all KTDA-managed factories.
He noted no factory has escaped the impact this year. All have experienced some decline compared to last year. “It is good to compare yourself with others. You may think that you are the one who lost but we know that in the country, there are factories that have lost more than Sh10,” he pointed out.
Richard Magu, Chair of Thumaita Tea Factory, highlighted that the five factories in Zone 5 served over 70,000 farmer shareholders and have collectively disbursed about Sh5 billion in bonuses this year.
“The tea business should be taken seriously. While it’s understandable that farmers want better pay, resorting to strikes is not the answer,” he said, referencing recent protests at Kangaita Tea Factory where farmers refused to pluck tea over low bonus payments.
Magu urged farmers to look at factories that received higher payments, learn from their strategies, and work together to improve productivity and quality to fetch better prices in the future.
By Mutai Kipngetich
