- More than 8,000 EPK workers will receive a phased 14 per cent pay rise.
- The first increase has been backdated to January 2026.
- The deal comes as tea producers face rising production costs and market pressure.
Eastern Produce Kenya (EPK) has agreed to raise wages for more than 8,000 employees by a combined 14 per cent, under a new Collective Bargaining Agreement (CBA) that adds to labour costs for one of the country’s leading tea producers.
The pay deal, negotiated with the Kenya Plantation and Agricultural Workers Union (KPAWU), splits the increase into two phases: a seven per cent rise for 2026, backdated to January, followed by a further seven per cent adjustment in 2027.
The agreement lands at a time when tea companies are already contending with high production costs, shifting market conditions and mounting pressure to stay competitive internationally. I
t applies to more than 8,000 workers across EPK’s operations, and adds to an ongoing conversation about pay and working conditions in Kenya’s agricultural sector, where labour remains one of the biggest drivers of production expenses.
EPK Company Director Leah Kibii Chirchir framed the wage review as part of the firm’s wider commitment to staff welfare, noting that employees remain central to sustaining both production levels and the quality of tea the company sends to international markets. She said EPK would keep working with stakeholders to roll out the new pay terms while keeping its operations sustainable.
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For its part, KPAWU pointed to the broader economic pressures facing tea growers, while praising EPK specifically for meeting its industrial relations obligations.
KPAWU Secretary General Francis Atwoli credited large-scale tea producers such as EPK with playing a meaningful role in national development, particularly through job creation.
Over the two-year period, the agreement will add to EPK’s overall wage bill, though the exact financial impact will hinge on the company’s existing pay structure and the precise number of staff it covers.
Workers, meanwhile, stand to feel the effect sooner rather than later. Because the first seven per cent increase is backdated, employees will see its impact on their earnings from January 2026 onward.
The deal reflects a wider dilemma facing agricultural employers, who must raise worker pay without eroding their competitive edge in markets shaped by volatile commodity prices and climbing operating costs.
Tea producers are especially vulnerable to this tension, since their revenues are largely set by international prices, yet a large share of their costs are incurred locally.
In that sense, the EPK agreement offers a test case for how agricultural employers can absorb higher wage bills while still protecting profit margins and sustaining investment in production.
EPK said it remains committed to implementing the new terms in partnership with KPAWU and other stakeholders, while continuing to prioritise production, sustainability and staff welfare.
By Benedict Aoya
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