Large plantations raise tea output by 8 percent in 11 months

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A woman carries a sack with tea leaves on her back after plucking at a farm in Kapsabet, Nandi County on April 04, 2023. PHOTO | JARED NYATAYA | NMG

Tea production increased by 7.94 percent in the 11 months to November last year boosted by a significant rise in output from large plantations.

Data from the Tea Board of Kenya (TBK) shows tea output grew to 515.9 million kilogrammes (kg) between January and November 2023 up from 477.9 million kg during the same period in the previous year.

A further breakdown of the data shows that plantations produced 266.3 million kg of the green leaf during the period, an increase of 13.2 percent from the same period in 2022.

On the other hand, smallholder farmers recorded a marginal increase of 2.83 percent with output rising from 242.7 million kg to 249.6 million kg.

In November alone, production from both plantations and smallholders increased by 1.68 million kg from 49.22 million kg registered during the same period of 2022 to 50.90 million kg.

“Higher production was attributable to heavy downpour experienced during the first week of the month which is characteristic of November, as it usually marks the peak of “October December”’ seasonal rainfall,” said the Tea Board.

The higher volumes –coupled with a weak shilling– have ensured tea earnings have risen significantly, handing a boost to farmers.

According to data from the Central Bank of Kenya (CBK), average tea prices increased to Sh328,498 per tonne on average in the 10 months to October.

This is an increase from an average price of Sh292,935 per tonne the green leaf fetched on average during the same period in 2022.

The increase in earnings puts tea farmers on course to receive higher payments for their produce later this year from their factories.

Last year, more than 600,000 tea farmers affiliated with the Kenya Tea Development Agency (KTDA) received a record bonus payment of Sh44.15 billion. This brought to a total of Sh67.7 billion –inclusive of monthly payments– that the farmers received in the financial year to June 2023.

This marked an increase of 7.6 percent from a total pay-out of Sh62.89 billion that they were paid in the previous year. In the year to June 2023, tea prices hit Sh341 per kg, up from Sh311 in the previous year.

The significant jump in prices of the green leaf helped diminish the impact of lower volumes, with production having declined to 1.14 billion kg during the period down from 1.25 billion kg in 2022.

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