Central Kenya record tea bonus brews storm in western farmers’ cup

Politics and policy

Highest paid grower in Meru to get Sh160,000 while the lowest earner in western will receive Sh40,000. PHOTO | FILE 

By GERALD ANDAE, gandae@ke.nationmedia.com

In Summary

• Historically, factories in the Mount Kenya region fetch higher payments than those in western Kenya based on the factory prices at the auction as well as the quality.
• On average, growers from Kiambu and Thika will get Sh8 billion while their counterparts in Nandi and Kitale will be paid Sh1.3 billion.
• Sanganyi and Ogembo/Eberege tea factories in Kisii region will receive the lowest bonus payout of Sh17 per kilogramme of tea. Mudete tea farmers in Vihiga will also receive a paltry Sh19.50.

Tea farmers in Kiambu and Thika will earn Sh8 billion in bonuses, seven times more than what growers in the western region are expected to receive.

Latest industry performance data released on Tuesday shows the highest paid farmer affiliated to Kenya Tea Development Agency (KTDA) in Meru will pocket a net of about Sh160,000 per acre while the lowest paid grower in western will earn Sh40,000 from the same size of land.

Charles Kering from North Rift is not happy with this year’s bonus.

“It is unfair for us in the North Rift to earn Sh1.3 billion compared to our counterparts in central Kenya who will be earning seven times more than us yet all this tea is sold at the same place,” said Mr Kering, a large scale farmer in Nandi, one of the regions that registered a low bonus earnings this year.

Kaptumo Tea Factory, where Mr Kering delivers his green leaf earned Sh19.20 per kilogramme compared to Imenti factory in Meru where farmers will be pocketing Sh38.50 for the same quantity when the bonus is finally paid next month.

“We are happy with the improvement in earnings this year,” said Mugambi Nkanata, a farmer who delivers his tea to Imenti Tea Factory .

READ: Strong dollar, high prices sweeten earnings for tea farmers

But Kaptumo’s performance has improved this year with the bonus nearly doubling from Sh9 paid last year to Sh19.20 this year.

On average, growers from Kiambu and Thika will get Sh8 billion while their counterparts in Nandi and Kitale will be paid Sh1.3 billion.

Last year, Meru region received the highest bonus with Imenti Tea Factory emerging top, paying Sh26.50 per kilogramme of tea. Historically, factories in the Mount Kenya region fetch higher payments than those in western Kenya based on the factory prices at the auction as well as the quality.

Sanganyi and Ogembo/Eberege tea factories in Kisii region will receive the lowest bonus payout of Sh17 per kilogramme of tea. Mudete tea farmers in Vihiga will also receive a paltry Sh19.50.

KTDA managing director Lerionka Tiampati said the payment is based on a number of factors that inform the amount that each factory should be paid.

“The variation in bonuses depend on many factors including the cost of production and factory efficiencies,” he said.

Mr Tiampati also pointed out that the bonus paid depends on the volume of tea that has been processed and the prices that they fetched. Normally, tea prices from different factories fetch different prices depending on demand and quality at the weekly Mombasa auction.

However, the Kenya Union of Small Scale Tea Owners secretary-general George Kinyua said he plans to write a protest letter to KTDA over the low bonus payments.