By Ongaga Ongaga
The Kenya Tea Development Agency (KTDA) has announced the second payment for tea delivered by smallholder farmers, even as concerns mount over reduced earnings.
The bonus, traditionally awaited by farmers as a financial boost, has been lower this year, attributed to international market conditions and currency fluctuations.
KTDA noted that the Kenya Shilling’s depreciation against the US dollar, which stood at KSh144 to the dollar compared to KSh129 last year, had weakened earnings.
In total, KTDA-managed factories will pay KSh26 billion compared to KSh31 billion last year.
“This weaker exchange rate means that even as international prices were stable, the amount translated to fewer shillings locally,” KTDA explained.
However, some Kenyans feel cheated by this explanation since disbursement varies by region.
In some regions, farmers will earn an excess of Ksh.38 per kilo while their counterparts elsewhere are set to pocket as low as that.
Already, some farmers have either threatened to or actually embarked on uprooting their crop, arguing that the business has become an arena of exploitation.
Tea remains among Kenya’s top foreign exchange earner, generating over KSh150 billion annually, but farmers are increasingly uneasy about fluctuating payments.
Already, the issue has ignited mixed reactions with politicians jumping in.
“It is important that tea is not politicized. Bringing politics into factory operations only harms farmers,” said KTDA.
“The surest way to safeguard incomes is through maintaining high-quality green leaf, disciplined factory management, and adherence to good agricultural practices.”
Looking ahead, the agency pledged to diversify markets, including pushing into China and stabilizing farmer incomes through innovation.
“While understandably disappointing to many, this year’s final payment is in line with the affordable prices obtained by KTDA’s overseas buyers,” the statement added.