Factories managed by KTDA are operating below average following a sharp drop in green leaf from farmers.
The worst hit areas are Kirinyaga, Nyeri and Embu counties.
February was the worst hit month with green leaf delivered by farmers dropping 52 per cent to 54.3 million kilogrammes.
Drought has led to a dramatic fall in production during the first quarter of the year, industry officials said on Wednesday.
Factories managed by the Kenya Tea Development Agency (KTDA) are now operating below average following a sharp drop in the amount of green leaf delivered by farmers, with the worst hit areas being Kirinyaga, Nyeri and Embu counties.
Tea leaves delivered by farmers dropped by 25 per cent to 705.2 million kg in the nine months to March compared to 936.6 million kg in a similar period last year.
KTDA warned that the production dip and lower prices at the Mombasa Tea Auction also mean that output is unlikely to match the Sh84 billion generated last year, translating to lower earnings for 560,000 smallholder farmers.
February worst hit
The sharp drop in production has been attributed to the acute prolonged dry spell.
February was the worst hit month with green leaf delivered by farmers dropping 52 per cent to 54.3 million kilogrammes compared to 114 million kilogrammes in February 2016.
March saw a drop of 35.8 per cent to 77.9 million kg.
KTDA chief executive Lerionka Tiampati said factories in the worst hit areas are operating for only two days a week to cut on operating expenses.
The drop in production has been heightened by the stark differences in weather over the two years - El Nino rains in the year 2015/16 led to a bumper crop while the current 2016/17 dry spell has depressed output.
Prices at the Mombasa Tea Auction have also been lower at an average $2.5 (Sh258.25) per kilogramme of tea in the nine months to March. This compares poorly to the $2.74 (Sh283.04) average for a similar period last year.
KTDA is Kenya’s largest tea producer, responsible for 60 per cent of Kenya’s tea production and exports.
The remaining 40 per cent is produced mainly by multinationals in Kericho, Kiambu and Nandi.
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