Tea Bonus Lands in Farmers’ Accounts as Payouts Diverge Sharply
Key Highlights
- Kenya Tea Development Agency says September earnings and second-payment bonuses have been deposited, with growers able to access the money from 12 October.
- President William Ruto cited bonus rates ranging from KSh 12 ($0.09) to KSh 50 ($0.39) per kilogramme across factories for the 2025/26 season.
- Tea output was lower in the first 11 months of the financial year, while factory costs and performance continue to shape what farmers receive.
Kenya’s smallholder tea farmers can now access their September earnings and annual second-payment bonuses, but the amount each grower receives depends heavily on the performance and costs of their factory.
The Kenya Tea Development Agency (KTDA) released the September monthly payment and bonus funds into farmers’ bank accounts on 9 October, according to KTDA chair Enos Njeru, as reported by The Star. Farmers were told they could access the funds from Monday, 12 October, during normal banking hours.
The payments matter to households that depend on tea for regular income, particularly as factory-level bonus rates differ substantially. The overall value of the 2025/26 season’s payout had not been officially disclosed in the reports available at filing.
Bonus rates vary by factory
President William Ruto said bonus rates for the 2025/26 financial year ranged from KSh 12 ($0.09) to KSh 50 ($0.39) per kilogramme of green leaf, The Star reported after the Agriculture and Food Summit on 9 October. The range highlights the difference in returns growers can receive even within Kenya’s smallholder tea sector.
Ruto said farmers typically receive an average of KSh 30 ($0.23) per kilogramme each month, while the second payment varies according to factory performance. Factory directors consider tea sales revenue alongside electricity bills, management fees, fuel costs and staff salaries when setting bonus rates.
The rates are therefore not a uniform national payment. The figure a farmer receives depends on the factory through which their green leaf is delivered, as well as the revenue and expenses recorded there.
Lower leaf deliveries add pressure
Kenyan tea factories received 1.0947 billion kilogrammes of green leaf during the first 11 months of the 2025/26 financial year, compared with 1.1444 billion kilogrammes over the same period a year earlier, The Star reported. That is a decline of about 4.3%, calculated from the figures cited in the report.
Lower volumes can limit the amount of leaf available to sell and process, while operating costs reduce the revenue that can be distributed to farmers. Industry players also cited disruptions along shipping routes and a 0.8% export levy as pressures on earnings, the newspaper reported.
These factors do not affect every factory in the same way. Sales performance, processing costs and management decisions can cause rates to diverge, which is why the announced bonus range is wide.
Support for factories and what remains unknown
The government has allocated KSh 850M ($6.55M) to support 17 KTDA-managed factories in improving operational efficiency, according to The Star. The allocation is intended to help factories address operational challenges and improve farmers’ returns, though it does not mean all growers will receive the same bonus.
For farmers, the key information to check is the rate declared by their own factory and the amount credited to their bank account. The final aggregate payout for the 2025/26 season remains unconfirmed in the reports reviewed for this story.
The release confirms that the funds have been deposited, but it does not establish a single bonus rate for the whole country. Factory-specific figures and the eventual total payout will provide a clearer picture of how much tea income reached growers this season.
Further business context is available in Mwenendo’s coverage of Kenya’s business and economy.