The tea factory management in Kenya has announced bonus payments to farmers for the 2025/2026 financial year, following the supply of over 1,094,710,523.06 kgs of green leaf for processing. The bonus declaration was made after KTDA managed factory directors analyzed various expenses, including green leaf monthly payments to farmers, revenue from tea buyers, electricity bills, and management fees. The analysis revealed that the industry faced challenges such as the closure of the Strait of Hormuz, which disrupted shipment routes and increased petroleum costs.
The introduction of a 0.8% tea levy on exports further affected the tea industry's performance during the review period, from July 1, 2025, to June 30, 2026. According to KTDA Holding Chairman Enos Njeru, the factory boards evaluated the performance, focusing on revenue and expenditure, before declaring the bonuses. The bonus payments vary across different factories, with Rukuriri Tea Factory declaring Sh50 per kg, Mungania Sh43.80 per kg, and Kathangariri Sh40 per kg.
Other tea factories, such as Gathuthi, also declared their bonuses, with Chairman Hosea Kimamo announcing Sh47.50 per kg of green leaf delivered. The board analyzed expenditures incurred compared to income, and the accounts for the financial year 2025/26 were audited and finalized before the bonus declaration. The second payment was declared after the evaluation.
The bonus payments for various factories include Ngere at Sh48 per kg, Gathuthi at Sh47.50 per kg, Njunu at Sh45.20 per kg, Makomboki at Sh45 per kg, Momul at Sh40.50 per kg, Gitugi at Sh40.50 per kg, and Nduti at Sh40 per kg. Additionally, Chinga, Mataara, Iriaini, and Kiru factories also declared their bonuses, ranging from Sh36 to Sh33.50 per kg.
Some factories, such as Githambo, Kanyenya, Gianchore, and Kaptumo, declared lower bonuses, ranging from Sh30.30 to Sh12.50 per kg. Compared to the previous year, some factories, like Momul, posted higher bonuses, increasing from Sh32.50 per kg to Sh40.50 per kg.
The tea industry's performance was affected by global events, such as the closure of the Strait of Hormuz, and local factors, including the introduction of the tea levy. Despite these challenges, the factories have declared bonuses to farmers, showing a commitment to sharing the industry's revenue.
The bonus payments reflect the industry's efforts to balance revenue and expenditure, ensuring that farmers receive a fair share of the income generated from the sale of tea. The KTDA managed factory directors and chairmen, such as Enos Njeru and Hosea Kimamo, played a crucial role in evaluating the performance and declaring the bonuses.
Key points
- Kenyan tea factories declare lower bonuses for farmers due to industry challenges.
- The bonus payments vary across different factories, ranging from Sh18 to Sh50 per kg.
- The tea industry's performance was affected by global events and local factors, including the closure of the Strait of Hormuz and the introduction of the tea levy.
