Kenya’s smallholder tea farmers have been hit by lower second payments this year, with the Kenya Tea Development Agency (KTDA) saying the drop has little to do with politics and everything to do with global markets.
In a statement on Tuesday, KTDA explained that weaker earnings were mainly caused by a stronger Kenyan shilling and a dip in demand for tea in key markets.
“In 2024, the Kenyan shilling traded at an average of Ksh144 to the US dollar, while in 2025 the average was Ksh 129. This weaker exchange rate meant that even when international tea prices remained steady, the amount realised in Kenyan shillings was significantly lower,” the statement read in part.
The impact has been felt in nearly every tea-growing region.
In the East of the Rift Valley, Kiambu farmers will take home Ksh 371 per kilo of made tea, down by Ksh 46 from last year. Murang’a recorded Ksh 376, a drop of Ksh 42, while Nyeri fell to Ksh 388, also down by Ksh 42. Kirinyaga earned Ksh400, down by Ksh38. Embu posted Ksh 404, down by Ksh 34, and Meru Ksh 381, down by Ksh 46.
The pain was even sharper in the West. Kericho recorded Ksh245, a decline of Ksh101. Bomet dropped to Ksh209, down by Ksh85. Nyamira received Ksh 266, down by Ksh 106. Kisii fell to Ksh 246, down by Ksh 95, while Nandi and Vihiga got Ksh 208, down by Ksh 66.
KTDA said these are prices for made tea, and when converted to green leaf using the 4.4 ratio, they explain the reduced payouts across the board.
The agency also explained why some regions earn more than others.
“Differences in payments between the East and West of the Rift arise from quality variations, market dynamics, and cost structures. Teas from high-altitude zones often fetch better prices because of attributes preferred in global markets,” KTDA said.
Global demand
Some factories faced reduced demand globally and higher operational costs, which further reduced their earnings.
KTDA added that even independent producers and plantation companies in the West of Rift experienced similar challenges, showing the problem was industry-wide.
KTDA urged farmers not to let the issue become political.
“Tea should not be politicised. Involving politics in factory operations harms farmers,” the agency said.
Farmers were encouraged to focus on producing high-quality green leaf, ensuring disciplined factory management, and sticking to good farming practices.
According to KTDA, the final bonus is the balance left after deducting monthly payments and covering costs for processing, marketing and logistics.
“While disappointing to some, the outcome reflects global trading conditions beyond our control,” KTDA said.
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