Smallholder tea farmers cry foul as bonus payments plunge

The 680,000 small-scale growers will also contend with markedly uneven payments across KTDA’s 77 factories.

Documents seen by Business Daily show that factories in the East of Rift—mainly in the Mt Kenya region—will pay between Sh26 and Sh57 per kilo as second payment, popularly known as bonus. In contrast, their counterparts in the Rift Valley and South Nyanza will receive only Sh10 to Sh32 per kilo, the lowest rates in recent years.

Kiru Tea Factory in Murang’a is among the hardest hit, paying Sh32 per kilo compared with Sh51.10 last year—a drop of Sh19.10.

Embu’s Rukuriri Tea Factory leads nationally at Sh57.50 per kilogramme, though this is a Sh4 decline from last year’s Sh61.50. On the other end, West of Rift farmers supplying Kiamokama and Rianyamwamu will get just Sh10 per kilogramme—half of last year’s Sh20.

Nyamache and Itumbe suppliers will receive Sh11, down from Sh20.

The disparities have angered farmers, who accuse the industry players of perpetuating unfairness.

“The huge differences in payments between factories in the West and East of Rift, which have persisted over the years, must be addressed to end longstanding claims and suspicions of manipulation at the Mombasa Tea Auction,” said Mr Cheruiyot Baliach, KTDA’s zonal Director for Kaptebenget zone in Bomet County.

Motigo Factory Director Simion Mutai cited high electricity costs and the suspended reserve price mechanism as reasons for the poor payouts.

Kericho Governor Erick Mutai called for a second auction in the South Rift to complement Mombasa, arguing that this would expand markets and address price disparities.