KTDA Links Low Tea Bonus To Weak Currency, Low Demand


The Kenya Tea Development Agency (KTDA) has addressed concerns regarding the reduced bonus for this year, asserting that the decline is a result of global market dynamics rather than internal mismanagement.

  The agency pointed to weaker currency fluctuations and lower international prices as the primary reasons, highlighting that the shilling averaged 129 against the dollar in 2025, in contrast to 144 in 2024. According to KTDA, this situation resulted in farmers receiving less in shilling terms, even when global prices remained stable. The Agency noted that average tea prices across various factories indicate this downturn. In the East of Rift Valley, Kiambu reported Sh371 per kilo, a decrease of Sh46, while Murang’a dropped to Sh376, Nyeri to Sh388, Kirinyaga to Sh400, Embu to Sh404, and Meru to Sh381. In the western region of Rift, farmers experienced more significant impacts, with Kericho selling at Sh245 per kilo, down Sh101; Bomet at Sh209; Nyamira at Sh266; Kisii at Sh246; and Nandi/Vihiga at Sh208, all showing considerable declines compared to the previous year. “The differences in payments between East and West Rift reflect quality characteristics, market conditions, and cost structures,” KTDA stated in a press release. “Independent producers and plantations outside of KTDA have encountered similar challenges, indicating that this issue is not exclusive to our factories.” The agency cautioned against politicizing tea payments, emphasizing that such actions would only disadvantage farmers and disrupt factory operations. KTDA further mentioned that it is actively pursuing orthodox teas for niche markets, enhancing value addition, and modernizing factories to ensure the stabilization of farmer incomes in the future.

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