More than 700,000 farmers in Kenya to receive tea bonuses — Nation Kenya

In Kenya, the Kenya Tea Development Agency (KTDA) is due to transfer annual bonuses to more than 700,000 small-scale tea producers on October 12. The funds will be credited to farmers’ bank accounts together with the monthly payment for September, Nation Kenya reports.

KTDA Holdings Chairman Enos Njiru said the funds were released last Friday. According to him, farmers will be able to receive the payments on Monday during regular banking hours.

Rates to be announced by the factories themselves

This year, bonus rates, also referred to as second payments, will be announced by tea factories rather than the KTDA board, as was previously the case. The total amount of payments has not yet been disclosed. This concerns 77 factories grouped into 54 units, taking into account satellite facilities operating under the management of main factories.

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According to the publication, the bonus may range from 12.50 to 50 Kenyan shillings per kilogram, depending on the specific factory. The rate is influenced by the prices at which tea is sold at the Mombasa tea auction and through direct sales on domestic and export markets.

What determines the amount of the payment

In the 2024/25 financial year, producers received a total of 69.8 billion Kenyan shillings — approximately 20 billion less than the 89.6 billion shillings received a year earlier. When calculating the bonus, factories deduct from sales revenue the costs of processing and selling tea, including electricity, wood, fuel, water, leaf collection, equipment maintenance, wages and loan repayments.

The final income of an individual farmer depends on the amount of green tea leaf delivered during the year. A single rate applies within the area served by one factory, but delivery volumes vary due to the size of tea plantations, agricultural practices and yields.