KTDA explains why tea farmers will receive lower bonuses as pressure for reforms mounts

Farmers have been anxiously awaiting this year’s final bonus announcement, as indications suggest that the payouts will be lower than last year’s, sparking concern among growers who depend on the crop for their livelihoods.

In a statement on Tuesday, KTDA attributed this year's drop in earnings to international market conditions and currency exchange movements that were less favourable compared to last year.

"In 2024, the Kenya Shilling traded at an average of Ksh 144 to

the US dollar, while in 2025 the average was Ksh 129," said the statement in part.

"This weaker exchange rate meant that even where international prices were stable, the amount realized in Kenya Shillings was significantly lower."

The drop also affected tea prices in different regions of the country, as the East Rift and Kiambu fetched Ksh 371 per kilo, a drop of Ksh.46 from last year.

Likewise, KTDA said that Murang’a earned Ksh 376, down by 42 shillings, Nyeri earned Ksh 388, drop by Ksh.42, Kirinyaga earned Ksh 400, down by Ksh.38, Embu Ksh 404, down by Ksh.34 and Meru earned Ksh 381, down by Ksh.46.

KTDA highlighted that tea from high-altitude zones naturally fetch better prices because of its better quality and is favoured in global markets.

This explains the price fluctuation between the East and West of the Rift region.

KTDA said that this year's global trading conditions are beyond its control but it has already forged out a plan to cushion farmers and stabilize their incomes.

"We are expanding production of orthodox teas, which fetch higher prices in niche markets, to reduce reliance on CTC teas," said KTDA.

"We are also working with the government to promote value addition, reduce packaging costs, and open new markets including China. Additionally, we are investing in factory modernization and energy solutions to cut costs and improve competitiveness."

KTDA, which manages more than half of the country’s production, has been under immense pressure to deliver reforms.

Its new leadership, under Chairman Chege Kirundi, has pledged a “Farmers First” approach aimed at lowering operational costs, ensuring transparency in auctions, and introducing innovative marketing strategies.

Farmers, however, are eager to see action beyond promises, particularly in areas such as timely delivery of inputs and efficiency in factory operations.

Kenya remains the world’s leading exporter of black tea and the second-largest producer after China, yet the country continues to rely heavily on bulk exports sold through the Mombasa auction — a system vulnerable to market volatility.