Tea, Coffee, Floriculture and General Agriculture Monthly Wage Rate (Sh)
Tea Industry rates higher than other sectors despite the sub-sector’s CBA being two years behind others.
7,004
General agriculture
11,725
Tea
10,985
Coffee
8,215
Floriculture
7,004
General agriculture
Workers in the tea sub-sector draw higher wages than their
counterparts in other cash crop industries such as coffee and
floriculture despite pending pay rise deals, a new report showed.
The gap could widen further when the pending 2016-17 and 2018-19 Collective Bargaining Agreements (CBAs) are concluded.
According
to CBA statistics tea workers get daily wages of about Sh450 compared
to coffee (Sh422.50), floriculture (Sh315.97), and general agriculture
Sh(269.40) — translating to monthly rates of Sh11,725, Sh10,985,
Sh8,215.22 and Sh7,004.40 respectively.
Though the tea
sub-sector is leading, its rates are of CBA 2014-2015 and are yet to be
revised, yet coffee has already revised its rate for 2017-2018 and
floriculture for 2017-2019.
The general agriculture sub-sector has not revised its rates and has been served with a legal notice.
The
price parities come even as the Consumer Price Index and inflation have
been surging with overall inflation of 6.57 in 2015, 6.32 in 2016 and
8.01 in 2017, the report showed.
Within the tea
sub-sector, Kenya Tea Development Association tops daily wage payment at
Sh1,003.40, followed by Ketepa (Sh547.20), and Unilever (Sh483.79).
Others are EPK (Sh419.25), DL Koisagat & Emrok (Sh419.25),
Mau Tea Multipurpose Co-operative (Sh383), Kapchebet (Sh357.50),
Kipsigis Highlands Multipurpose Co-operative (Sh348.10), and Kiptagich
(Sh326.23).
In contrast Coffee Growers Association
(CGA), which has already revised its rates for 2017-2018, pays Sh422.50,
while AEA Growers pays Sh315.97.
Non-cash benefits
Non-cash benefits in the tea sub-sector include free housing, water, electricity, wood fuel, and training opportunities.
Non-cash benefits in the tea sub-sector include free housing, water, electricity, wood fuel, and training opportunities.
Others are free primary school and free medical services in company facilities and NHIF outside the company.
In the report, non-cash benefits in floriculture and coffee sub-sectors are not shown.
Gratuity
is mostly similar across tea, coffee, and boards as worker are eligible
for the benefit after completing seven to 10 years continuous service.
They are paid 21 days for every year of service.
The same applies to housing. Most employees are entitled to housing allowance of 15 per cent of their basic salary.
In
funeral expenses Ketepa tea pays the highest at Sh34,000 followed by
EPK (Sh32,000) and DL Koisagat & Emrok (Sh32,000). CGA pays the
least at Sh17,000 while AEA pays Sh27,000. Annual leave allowance is
across the sub-sectors too, as employees who have worked for between one
and five years are entitled to between 24-28 days.
The
revised rates follow the settlement of a CBA dispute of 2014 by the
Kenya Plantation and Agricultural Workers Union (KPAWU) and employers.
Court ruling
A ruling delivered by Judge Monica Mbaru in 2016 awarded workers in the agriculture sector an increase in gratuity pay, medical and leave allowances.
A ruling delivered by Judge Monica Mbaru in 2016 awarded workers in the agriculture sector an increase in gratuity pay, medical and leave allowances.
The
Employment Act (Sections 31, 32, 33 and 34) requires that an employer
provides an employee with housing, water, food and medical services.
Daily wage rate within the tea sector
KTDA tops daily wage payment at Sh1,003.40, followed by Ketepa (Sh547.20), and Unilever (Sh483.79)
KPAWU’s
demand of a 25 per cent pay rise in 2014 and 25 per cent for 2015 was
countered with an offer of two per cent (2014) and two per cent (2015)
by the sub-sectors.
In 2017, Kenya earned Sh115.25
billion from exports of fresh horticultural produce, which include cut
flowers, fresh fruit and vegetables.
Fresh produce
exports are a key source of hard currency for the East African economy,
along with tourism, cash from the diaspora, coffee and tea.
Kenya’s
total tea export earnings rose to Sh129 billion in 2017 — the highest
in five years — from Sh120 billion a year earlier, while total output
was down seven per cent to 439 million kg.
Kenya is the biggest exporter of black tea in the world, and the beverage is also the leading source of foreign exchange.
Quantity of Tea,Coffee and Horticulture exports
Coffee
Tea
Horticulture
Kenya’s
tea export earnings are forecast to rise further in 2018, while total
output is expected to rebound after a fall in production last year, the
Agriculture and Food Authority’s Tea Directorate projected in February.
Tea
export earnings are expected to rise five per cent in 2018 to Sh135
billion, while total output is expected to hit 452 million kilos buoyed
by good weather after drought cut production in 2017, the directorate
said in a statement.
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