Farmers count days to KTDA bonus as payout dates confirmed
The payout, commonly known as the second payment, is the highlight of the tea calendar and a lifeline for growers supplying green leaf to 77 factories under KTDA’s management.
Over 680,000 small-scale tea farmers across 21 counties are counting down to the release of this year’s Kenya Tea Development Agency (KTDA) annual bonus, expected within the next two weeks.
The payout, commonly known as the second payment, is the highlight of the tea calendar and a lifeline for growers supplying green leaf to 77 factories under KTDA’s management.
According to a schedule issued by the agency, the announcement of bonus rates will begin on September 22, with the first figures expected from factories in the West of Rift region, including Mogogsiek, Kobel, Boito, Kapset, Rorok, Kapkoros, Tirgaga, Olenguruine, and Motigo.
Factories in the Mt Kenya region will close the process on September 26, with Rukuriri, Mungania, Kathangariri, Nduti, Ikumbi, Njunu, Gacharage, Makomboki, Ngere, Ragati, Iriaini, Chinga, Gitugi and Gathuti expected to declare their rates on the final day.
For the financial year ending June 30, 2024, KTDA recorded its strongest performance in history, paying farmers Sh89.29 billion for leaf deliveries. This was an increase of Sh21.5 billion compared to Sh67.7 billion in 2023.
Out of the total amount, Sh56.68 billion went into bonuses, Sh32.61 billion into monthly payments, and Sh1.04 billion into dividends for 54 factories—the highest dividend ever issued by KTDA.
KTDA Holdings Chairperson Chege Kirundi has reassured farmers that despite turbulence in global trade, the sector is on firm ground.
“There is hope in the tea industry, and there is no reason anybody should doubt that. We will overcome the challenges and make it profitable,” Kirundi said during a meeting in Bomet," Kirundi said.
“The onus is on farmers to deliver high-quality leaves to their factories. We at KTDA will steer the industry in the right direction to ensure profitability,” he added.
The tea sector has faced difficulties in recent years, particularly a glut at the Mombasa Tea Auction where over 100 million tonnes of processed tea remained unsold for two years following price caps introduced under the Tea Act, 2020.
The government has since lifted some provisions of the Act, giving factories more room to export directly to foreign buyers.
To cushion farmers and strengthen earnings, KTDA, together with state agencies, is now focusing on diversification into specialty and orthodox teas, which are gaining popularity in countries such as Japan, Russia, China, Germany, Iran, and France.
Kenya’s traditional export destinations have been Pakistan, the United Kingdom, Egypt, Sudan, Kazakhstan, and Poland.
The agency has also set its sights on emerging markets in China, India, Korea, Australia, Switzerland, South Africa, Ghana, Nigeria, and Morocco.
