Kericho Tea Farmers Brace for Lower Bonuses Amid Market Pressures

Key Highlights

• Kericho smallholder tea farmers to receive Sh20–32 per kilo of green leaf, down from last year’s Sh35–45.
• KTDA cites weak global tea prices, high factory costs, and over-reliance on black tea.
• Factories in East of Rift counties (Kirinyaga, Meru, Murang’a) paying Sh40–57 per kilo, nearly double Kericho’s rate.
• Top Kericho factories like Litein and Kapkatet to pay Sh30–32, while smaller ones such as Toror will pay Sh20–24.
• East of Rift factories benefit from better quality leaf, lower costs, and diversification into orthodox teas.
• KTDA promises reforms including value addition, market diversification, and cost-cutting to stabilize farmer earnings.
• Long-term prospects remain positive if reforms succeed, but Kericho farmers face immediate financial strain.

Smallholder tea farmers in Kericho County are preparing for reduced bonuses this year, with payouts expected to range between Sh20 and Sh32 per kilo of green leaf—significantly lower than last season’s Sh35 to Sh45.

The Kenya Tea Development Agency (KTDA) confirmed in a statement that factories in the West of Rift, including Kericho, recorded substantially weaker performance compared to their East of Rift counterparts. Factories in Kericho averaged Sh245 per kilo of made tea, which, after deducting costs and advances, left little room for bonuses.

In the county, top performers like Litein and Kapkatet factories will pay farmers Sh30–32 per kilo, while Tegat, Chelal, and Momul are projected at Sh25–28. Smaller factories such as Toror are expected to pay as low as Sh20–24 per kilo.

In contrast, factories in Kirinyaga, Meru, and Murang’a are rewarding farmers between Sh40 and Sh57 per kilo, nearly double what Kericho farmers will take home. KTDA explained the gap is largely due to global trading conditions, weather patterns, and differences in production costs.

“Factories that embraced orthodox tea production and maintained higher quality standards were able to command better prices, while those dependent on black tea and grappling with high energy costs faced greater volatility,” the agency noted.

The agency further cited rising costs of energy, transport, and labour, as well as weaker demand at the Mombasa auction, as key factors dragging down Kericho’s performance.

Despite the disappointing payouts, KTDA maintained optimism about the sector’s long-term prospects. “Our strategy going forward is to open new markets, promote value addition, and modernize our factories to cut costs. These measures, combined with diversification into orthodox teas, will ensure farmers earn more sustainable returns in future,” the agency said.

Historical data highlights the persistent disparity. In the 2023/24 financial year, East of Rift farmers earned between Sh26 and Sh57.50 per kilo, while West of Rift growers—including Kericho—received Sh15 to Sh32 per kilo. The pattern has continued this year, underscoring the structural challenges facing Kericho’s tea sector.

For now, households in Kericho that depend on tea face tighter margins, but experts say reforms targeting efficiency, quality, and market diversification could restore the county’s competitiveness and secure better incomes for thousands of smallholders.