Kenya: Tea farmers get low bonus payout in new structure

Gacharage Tea Factory in Murang’a has emerged as the best in payment of bonus to farmers.

The factory paid Sh30 per kilogram of tea delivered for processing between July and June, last year.

The second best in the payment is Ngeere Fea Factory in Gatanga that declared payment of Sh28 per kilogram while Ikumbu ranked third.

This year, the Kenya Tea Development Agency (KTDA) board hinted release of Sh20 billion to be shared by farmers affiliated to 69 tea factories, compared to Sh27.62 billion released the previous year.

Kiru and Makomboki tea factories in Murang’a County are yet to declare their bonus payment.

Chairman of Tea Lobby Sector Irungu Nyakera said the price of the commodity is set to improve following the new structure set by the government.

Mr Nyakera said the introduction of the reserve price at the auction was a major boost to lock out cartels that had been causing confusion in the market, leading to low prices.

“We are through with the first hurdle and growers participated in a fair election, as the rule of the law demands, unlike in the past where the KTDA dictated the directors to be elected,” said Nyakera.

Gatunguru Factory Chairman Samson Mwangi Kaguma said farmers will get Sh18 per kilogramme, noting there is hope for better returns next year.

Kanyenya-ini farmers will get Sh17.50, Njunu Sh22, Nduti Sh21, Githambo Sh20 and Ikumbi Sh25.  

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