A worker picks tea leaves at a farm in Nyeri County on May 25, 2023.
As the calendar flipped to the tea bonus season, the pomp and fanfare that once defined this time of year are noticeably absent.
The bustling towns of Kericho, Bomet, Embu, Murang’a, Meru, Nandi, Kiambu, and Nyeri -- usually electrified by the jingle of coins and a spending rush -- feel eerily subdued.
Shopkeepers wait behind counters with fewer customers, alcohol outlets experience reduced traffic, and boda boda riders complain about leaner tips and quieter roads.
In at least 21 counties, the annual economic boom that farmers eagerly anticipate has lost its sparkle, leaving traders wondering where the usual windfall has gone.
For many, the tea bonus cheques that once ignited local trade have significantly shrunk, even after Kenya Tea Development Agency (KTDA) factories declared and disbursed bonuses to farmers.
Tea growers earned Sh44.15 billion in bonuses in 2023 compared to Sh62.88 billion in 2022. However, the cumulative figure for all 71 factories -- 54 registered and 17 satellite -- remains undisclosed.
“It is expected that the total amount will be announced during an upcoming Annual General Meeting (AGM) for the KTDA directors,” a senior KTDA manager told Nation on Thursday.
In 2023, tea farmers contributed Sh140 billion to the economy from exports, compared to Sh138 billion in 2022 and Sh136 billion in 2021.
However, for many farmers, these figures mean little as their earnings fail to translate into tangible economic activity.
The sector has 680,000 small-scale tea growers supplying produce to KTDA factories across the country.
Traditionally, the tea bonus season was a time of indulgence. Farmers would withdraw large sums, spend lavishly on nyama choma and alcohol, and generously buy rounds for friends, acquaintances, and even strangers.
In these towns, it was not uncommon for men to fall victim to theft in their drunken stupor, with prostitutes stealing tens of thousands of shillings overnight.
“Gone are the days when skimpily dressed women would relocate to tea-growing towns, targeting farmers during this season. The diminished purchasing power among farmers has changed things completely in the tea-growing belts,” says Murang’a businessman Edwin Mwai.
Another farmer, Wilson Sigei from Bomet, said one can hardly notice or feel it’s bonus season now.
“Back in the day, temporary millionaires would literally paint the towns red. Despite tea being a leading foreign exchange earner in the country, farmers hardly feel its impact on their bank accounts. They are heavily indebted, having spent the money long before receiving it,” Mr Sigei told Nation.
Janet, not her real name and a sex worker in Kericho, agrees, saying, “In two decades in this trade, I have never seen such a low season. Tea farmers no longer spend like they used to. Many now frequent cheap liquor outlets or avoid drinking entirely.”
The reduced spending is attributed to structural and economic changes. Mary Nyambura, a farmer in Meru who supplies her green leaves to Githongo Tea Factory, says more women are now involved in managing household finances.
“Unlike in the past, when husbands controlled how the money was spent, women are now ensuring it is used wisely. The money is channelled into good use rather than wasted,” she explains.
Additionally, the introduction of digital banking has transformed how farmers access and spend their earnings. While convenient, digital banking has made it easier for farmers to spend their money before the bonus is even paid out.
“Farmers can now access their money in real time on their phones. In the past, they travelled several kilometres to banking halls, but mobile banking has eliminated that need,” says Cheruiyot Baliach, a KTDA zonal director in Bomet.
Loans taken out during the year have also significantly reduced the final payout. Most farmers interviewed by Nation said they are heavily indebted, having spent their money long before receiving it. Mary Kwamboka, a wines and spirits shop operator in Kisii, attributes this to the decentralisation of banking services.
“Cooperative societies and financial institutions now have branches in rural areas, making it easier for farmers to access their money without travelling to towns,” she says.
Mobile units deployed by cooperatives have further simplified transactions.
“Farmers no longer need to travel to urban centres; they can withdraw money at local buying centres,” says Nandi County farmer Darius Kibet.
The rising cost of production has also eaten into farmers’ earnings. Fertiliser deductions, though subsidised by the government, continue to impact payouts.
In the past year, KTDA supplied 97,000 metric tonnes of fertiliser to farmers at Sh2,500 per 50kg bag under a subsidy programme.
Additionally, the proliferation of private tea factories, particularly in the South Rift region, has disrupted the traditional bonus system. Unlike KTDA factories, many private factories do not offer annual bonuses.
“The narrative around earnings has changed with the introduction of these private factories,” says Mr Baliach.
