By Staff Reporter
Tea farmers across the country will receive increased bonus payments this year compared to what they earned in 2021.
In Kirinyaga County, five tea factories registered impressive bonuses of between Shs31 to Shs35.50 per kilo, up from Shs21 last year.
Kenya Tea Development Authority (KTDA) Board member John Mithamo attributed the good prices to the rise of the dollar against the shilling and fair bidding of the produce at Mombasa Tea Auction.
Mithamo, a director at the Ndima Tea Factory and a member of the KTDA Board, said farmers will get their pay in early July in line with a government’s directive.
“There will be no more delays like the previous regime did; hoarding the pay until October or even paid at its own convenience. Farmers need to be respected for their toil and be handed what is rightfully theirs in a timely manner,” he said.
Mithamo noted that though Kenya’s dependable markets have registered a low tea consumption rate, the dollar exchange at Shs120 boosted the earnings.
Much of the farmers produce is still in stores awaiting export.
According to the Tea Board of Kenya, earnings from tea exports to Russia declined by Shs598 million in March, as volumes dropped to 686,072 thousand from 2.6 million kilos during the same period last year.
Russia is Kenya’s fifth-largest buyer of tea in terms of volumes.
Mununga will pay the highest at Shs35.50, followed by Ndima and Kimunye tea factories which tie at Shs34, Thumaita Shs32.50 and Kangaita Shs31.
However, small-scale tea farmers from other parts of Mt Kenya expressed frustration with the bonus payout of between Shs35 and Shs40 per kilo announced for their supplies.
The farmers said that with the implementation of the new laws in the sector, they expected at least Shs90 per kilogramme this year.
The farmers quoted Agriculture CS Peter Munya that the bonus would be the highest since 2016.
While opening a new tea factory in Nyamira County mid-June, Munya promised that the pay would be the highest since 2016.
“This year’s bonus is projected to be the highest across the tea growing counties since 2016,” Munya promised.
Farmers and officials from the Kenya Union of Small-scale Tea Owners (KUSTO) complained of being duped to believe there would be a windfall this year.
KUSTO County Secretary Njagi Kinyamu said the Shs36.20 pay per kilogramme that Weru Tea Factory announced was below their expectations.
In Meru County, farmers supplying Imenti Tea Factory are likely to get the highest bonuses at Shs41 per kilo, followed by Kinoro Tea Factory (Shs37.10) and Kionyo Tea Factory (Shs36.30).
Last year, Weru Tea Factory paid Shs20 per kilo and Shs23 in 2020; the trend signalling better times ahead.
The farmers lamented the increasing cost of production, compelling them to take loans that they are now unable to repay.
In April, the 42 KTDA-managed tea factories paid a mini-bonus for green leaves delivered between July 2021 to December 2021, totalling approximately Shs3 billion.
The main bonus will be paid in full by July 8 in line with the tea reforms introduced in the Tea Act, 2020.
The reforms made provisions for the balance due to the tea grower to be fully remitted within three months of the end of the financial year.
This is a departure from the past where farmers received their bonuses in October to coincide with the monthly payments, which happened in the first week of every month as opposed to the 3rd week.
Implementation of the Task Force on the Design, Development, and Implementation of the Tea Industry Price Stabilization Framework will be done during the financial year 2022/2023.
The report, launched in March, recommends the establishment of a Tea Fund to be used to cushion tea farmers against adverse price shocks and provide input subsidies to smallholder tea farmers.
It will also look to support the construction of warehousing facilities at the factory level, promotion of value addition either at the factory level or through the common user facilities, and invest any surplus funds for their sustainability.
