What you need to know:
- Kenya Tea Development Agency (KTDA) is expected to pay the ‘bonus’ at an average rate of Sh36.26 a kilo of green leaf.
- This represents a 31.33 per cent increase over the 2014/15 average rate of Sh27.61 per kg.
Kenya Tea Development Agency (KTDA) is set to pay out Sh44.72 billion second payment to small-holder tea farmers starting next Monday, officials have said.
This is the largest ever payout and will be distributed to various farmers’ banks and sacco accounts either Monday or Tuesday next week.
The agency’s head of corporate affairs Ndiga Kithae said growers will receive the payment better known as ‘bonus’ at an average rate of Sh36.26 a kilo of green leaf. This represents a 31.33 per cent increase over the 2014/15 average rate of Sh27.61 per kg.
About 8,642 tea farmers from Mununga Tea Factory in Kirinyaga County will receive the highest bonus in the country at Sh48.35 a kilo.
Among the top earners are farmers from Kimunye in Kirinyaga (Sh47.50), Gitugi in Nyeri County (46.50) and Rukuriri in Embu County (Sh46).
Farmers from Kapsara Tea Factory, the only factory in Trans Nzoia County and its catchment, will receive the least bonus at Sh22 per kilo. Farmers from Tombe in Nyamira County (Sh22.50) and Ogembo/Eberege in Kisii County (Sh24.80).
Already farmers from 67 factories across the country under the management of the KTDA have received a total of Sh17.26 billion as initial monthly payment at an average rate of Sh14 per kilo.
“The improved earnings to growers is attributed to improved tea prices, cost management, favourable exchange rate and market diversification,” the agency said.