Smallholder tea farmers will earn more in a newly revised monthly pay rate following months of protests over muzzled pay.
This is after the Kenya Tea Development Agency (KTDA)-managed tea factories honoured their plea following guidance from the KTDA Holdings Board.
The KTDA Holdings Board issued this guidance to promote compliance with legal and financial requirements
The guidelines include, among others, avoiding over-commitment that could jeopardise factory solvency or debt obligations.
It follows farmer protests and demands in 2025 for better monthly advances to improve cash flow and livelihoods.
“The guidance is designed to ensure farmers are fairly compensated while factories maintain financial sustainability,” said KTDA.
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Factory boards will approve monthly payments capped at Ksh30 per kilogram, depending on their cash flow and existing financial obligations.
Factories West of the Rift Valley have a ceiling of Ksh.26, while those East of the Rift Valley may pay up to Ksh.30.
Many factories previously paid around Ksh.23–25 per kg of green leaf as the monthly advance. The revised rates will take effect from February 2026.
Final decision on payment revisions rests with individual factory boards, taking into account operational costs, cash reserves, and other financial commitments.
Monthly green leaf payments are the primary source of income for tea farmers, particularly smallholders.
These monthly payments are eventually supplemented by annual bonuses, which are calculated based on factory profitability and market performance.
By Kelvin Kibet
