Kirinyaga: Directors from the Kenya Tea Development Agency (KTDA) Zone 5, covering Kirinyaga County, have attributed the decline in tea bonus payments for the 2024/2025 financial year to the strengthening of the Kenyan shilling against the US dollar. Speaking on behalf of the zone's leadership, Ndima Tea Factory Director John Mithamo explained that since tea is traded internationally in dollars, a stronger local currency results in lower returns once the earnings are converted to shillings. This has directly affected the bonus payouts to farmers.
According to Kenya News Agency, Mithamo noted that last year the dollar was selling at 160, but this year it is changing to 129, leading to reduced returns. He emphasized that Zone 5 has performed well compared to other zones across the country and urged politicians to refrain from using the bonus issue for political gain. He called on farmers to remain focused and continue delivering high-quality green leaf, highlighting that Zone 5 factories ranked among the top 15 nationally.
Kimunye Tea Factory Chairperson Simon Njeru supported Mithamo's sentiments, encouraging farmers to compare bonus rates across all KTDA-managed factories. He pointed out that no factory has escaped the impact this year, with all experiencing some decline compared to last year. Njeru emphasized the importance of understanding the broader context, noting that some factories in the country have lost more than Sh10.
Richard Magu, Chair of Thumaita Tea Factory, highlighted that the five factories in Zone 5 served over 70,000 farmer shareholders and have collectively disbursed about Sh5 billion in bonuses this year. He urged farmers to take the tea business seriously and cautioned against strikes, referencing recent protests at Kangaita Tea Factory over low bonus payments. Magu advised farmers to learn from factories that received higher payments and work together to improve productivity and quality for better prices in the future.