The Kenya Tea Development Agency (KTDA) has attributed the decline in this year’s tea bonus payments to international market conditions and shifts in currency exchange rates that were less favorable compared to last year.
Farmers across both the Eastern and Western regions of the Rift have recorded lower earnings, with average prices per kilo dropping by between Sh34 and Sh106 compared to 2024.
In the East, Kiambu recorded Sh371 per kilo, down Sh46, while Nyeri earned Sh388, a fall of Sh42. In the Western region, Kericho saw prices drop to Sh245, a decline of Sh101, while Nyamira experienced the steepest decrease at Sh266, down Sh106 per kilo. KTDA explained that regional differences in prices are largely influenced by quality, altitude, and market dynamics.
“Teas from certain high-altitude zones naturally fetch better prices because of quality attributes favored in global markets,” the agency noted on Tuesday in a statement.
KTDA further pointed to the weaker shilling, which averaged Sh129 against the US dollar in 2025 compared to Sh144 in 2024, as a key factor affecting this year’s earnings.
“This weaker exchange rate meant that even where international prices were stable, the amount realized in Kenya shillings was significantly lower,” the agency stated.
The agency also cautioned against politicizing the issue, urging farmers to focus on quality and efficiency.
“Bringing politics into factory operations only harms farmers. The surest way to safeguard incomes is through maintaining high-quality green leaf, disciplined factory management, and adherence to good agricultural practices,” KTDA said.
In response to the current challenges, KTDA said it is investing in factory modernization, energy solutions, and diversifying into orthodox teas that fetch higher prices in niche markets. The agency is also working with the government to expand value addition, reduce packaging costs, and access new markets, including China.
“While understandably disappointing to many, this year’s final payment is a reflection of global trading conditions,” KTDA reassured farmers, adding that it remains committed to the long-term sustainability of the tea sector.