Political Outcry Over Regional Imbalance

NAIROBI – Nandi County Senator Samson Cherargei on Friday, November 7, 2025, sharply criticized the Kenya Tea Development Agency (KTDA) over what he termed a “great travesty and injustice” in the 2025 bonus payments to smallholder tea farmers. The senator’s remarks amplify a growing chorus of discontent from political leaders and farmers, particularly in the West of Rift region, who are questioning the transparency and fairness of the payout formula that has resulted in stark regional disparities.

Citing figures released for the 2024-2025 financial year, Cherargei highlighted the vast differences in payments. He noted that while some factories in the Mount Kenya region were paying farmers rates as high as KSh 48.10 per kilogram, farmers in Vihiga, Nandi, and Kisii counties were receiving rates as low as KSh 10 to KSh 14 per kilogram. “If KTDA doesn't fix this, we will uproot tea altogether,” Cherargei warned, dismissing claims that the disparities were justified by differences in tea quality between the regions.

KTDA Cites Market Forces and Economic Headwinds

In response to the growing criticism, KTDA has attributed the lower overall bonus payments and regional variations to a combination of challenging global market conditions, a stronger Kenyan shilling, and operational factors unique to each factory. In a statement on September 30, 2025, the agency explained that the average exchange rate of the Kenyan shilling against the US dollar strengthened from KSh 144 in 2024 to KSh 129 in 2025, which significantly reduced earnings in local currency terms.

Furthermore, KTDA officials stated that bonus rates are not uniform because each of the 71 factories it manages operates as an independent business entity. The final payout is determined by the factory's revenue from tea sales, which is influenced by the quality of green leaf supplied, operational costs (including energy and labour), and the prices fetched at the Mombasa Tea Auction. Teas from higher-altitude regions in the East of Rift, such as Kirinyaga and Nyeri, often command better prices due to their quality, which translates to higher bonuses for their farmers.

Economic Impact and Government Intervention

The tea sector is a cornerstone of Kenya's economy and a primary source of livelihood for over 650,000 smallholder farmers. The reduced bonuses for the 2024/25 financial year have sparked frustration, with reports of some farmers in Kisii and Nyamira counties destroying tea collection centres in protest. The situation has been exacerbated by a general decline in tea production in 2025, which fell by 11.5% in the first seven months of the year due to dry weather conditions, according to the Tea Board of Kenya.

The government has stepped in to mitigate the impact on farmers. Agriculture Principal Secretary Dr. Paul Kipronoh Ronoh announced that the State has directed KTDA to release KSh 2.7 billion in funds recovered from the collapsed Chase and Imperial Banks. This refund is intended to cushion farmers, particularly those in the West of Rift, and was to be paid out by October 15, 2025, alongside the bonus. Dr. Ronoh also clarified that while bonus rates were lower, the total average payment for the year was KSh 56 per kilo when including the initial monthly payments of KSh 23-25 per kilo. The government has also vowed to push for reforms within KTDA to enhance transparency and efficiency, including stricter oversight of expenditures and modernizing factories.

The Path Forward: A Call for Transparency and Reform

The controversy over the 2025 bonuses has reignited the long-standing debate about the structure and governance of the tea sector. While KTDA maintains that market dynamics are the primary driver of earnings, leaders like Senator Cherargei insist there are systemic inequities that disadvantage certain regions. Farmers and their representatives are demanding greater transparency in how bonuses are calculated and a review of the entire value chain, from green leaf collection to the auction in Mombasa. As the sector navigates global price volatility and domestic economic pressures, the call for a sustainable and equitable payment model for all Kenyan tea farmers grows louder.