Tea farmers across Kenya will be receiving less bonus this year compared to 2024 in what experts within the sector attribute to strong shilling that eroded earnings even as the country's produce faced subdued demand in the global markets.

In an update to farmers who supply green leaf to the Kenya Tea Development Agency managed factories, KTDA cited "currency exchange movements" underscoring that this year the Kenya Shillings exchange rate to the US dollar "were less favourable compared to last year."

"In 2024, the Kenya Shilling traded at an average of KES144 to the US dollar, while in 2025 the average was KES129. The weaker exchange rate meant that even where international prices were stable, the amount realized in Kenya Shillings was significantly lower," KTDA noted, adding, "while understandably disappointing to many, this year's final is a direct reflection of global trading conditions beyond KTDA's control."

During the period under review, KTDA added that factory tea prices equally decreased compared to a similar period in 2024 owing to less than favourable international tea prices.

Decrease in tea prices

For instance, for factories across East of Rift Valley and Kiambu County growing areas, farmers sold a kilo of tea at KES371, reflecting a decrease of KES46 compared to 2024. 

In Murang'a, farmers earned KES376 per kilo, being KES42 less than last year while in neighbouring Nyeri County, growers sold a kilo of tea at KES388, which was KES42 less than last year.

"Kirinyaga earned KES400, down by KES38; Embu earned KES404, down by 34; and Meru earned KES381, down by KES46," noted KTDA in a statement.

Other tea growing zones west of the Rift Valley experienced a decrease in tea prices per kilo during the period. In Kerich for instance, farmers suffered KES101 dip, earning just KES245. In Kisii, the price decreased by almost a similar margin, KES95 to trade at KES245 while tea prices per kilo in Nyamira contracted by KES95 to KES255.

"These are prices for made tea, and when converted to green leaf using the 4:4 ratio, they explain the reduced farmer payouts across board."

Additionally, KTDA explained that differences in tea prices across zones was attributable to "quality factors, market dynamics, and cost structures."

"Teas from certain high-altitude zones naturally fetch better prices because of quality attributes favoured in global markets."

At the same time, the industry watchdog noted that farmers from different zones were also affected by lower demand, and operational costs, factors that independent producers are also grappling with. 

Orthodox teas

Last week, as part of diversification in the sector, Agriculture Cabinet Secretary Mutahi Kagwe launched auction of orthodox teas in Mombasa.

The inaugural initiative, which saw the auction of 2,925 packages equivalent to 91,798 kilos of specialty teas, is aimed at premium global buyers even as authorities in the country scout for new markets including China.

“Kenya has an excellent profile for being a lead producer of CTC teas. But it is high time we diversified our markets by increasing our capacity to produce orthodox teas in order to capture the ever-changing global market and raising demand for specialty teas which will enable our farmers to tap into the premium market. This diversification will mean more money in their pockets, greater resilience and new revenue streams as consumers," said CS Kagwe.

According to KTDA, orthodox teas fetched between $3.40 and $4.16 per kilo last year compared to just $2.28 per Kg for bulk ordinary green leaf at the Mombasa auction.

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