Tea farmers queue at banks for bonuses as low payouts spark tax protests

Tea farmers protest low bonus payouts and demand tax cuts to boost earnings. [File, Standard]

Tea farmers across the country trooped to banks and savings and credit co-operative societies (Saccos) to confirm and withdraw their annual bonus payments yesterday, even as growers in Meru and Tharaka Nithi counties protested low payouts and called for the scrapping of taxes blamed for eroding their earnings.

The payments for the 2025/2026 financial year varied widely across tea factories, ranging from Sh12 to Sh50 per kilogramme of green leaf, triggering mixed reactions among farmers who had hoped for better returns from their investments.

A spot check across tea-growing areas found long queues at commercial banks and Saccos as farmers checked their accounts following an announcement by Kenya Tea Development Agency (KTDA) Holding National Chairman Enos Njeru that the payments would reflect in their accounts on Monday.

Mr Njeru said the release of the bonuses marked an important milestone for the estimated 700,000 tea growers, whose production sustains the country's tea industry and contributes to the national economy.

There were celebrations at Rukuriri, Gacharage, Ngere and Mununga tea factories, where some farmers welcomed the payments, while others expressed disappointment over the rates.

In Gatanga, Murang'a County, Solomon Njoroge, who delivered 5,600 kilogrammes of green leaf between July 1, 2025, and June 30, 2026, said he was satisfied with the amount received but felt it fell short of expectations.

“We understand the challenges that the tea sector has endured in the year, but some expenditures could have been reduced. We are calling on the directors to remain keen, as we hope for Sh70 per kilogramme next year,” he said.

In Bomet County, Mary Chelang'a described the payment as heartbreaking, saying farmers had endured harsh weather conditions and spent long hours at tea-buying centres, only to receive less than they had anticipated.

“We urge the payment to be adjusted upwards in the future to safeguard the interests of farmers,” she said.

In Nyeri County, Njeri Mburu urged factory boards to develop innovative strategies to improve the competitiveness of Kenyan tea in international markets.

Ms Mburu, who has leased three acres of tea in the Ragati area of Mathira East, expressed hope that farmers would receive more than Sh50 per kilogramme in the next payment.

In Embu County, farmers at Rukuriri factory praised the management, led by Joseph Rwanjau, for paying Sh50 per kilogramme of green leaf delivered during the year.

Newton Njiru attributed the improved earnings to better farming practices among growers in KTDA Zone Six factories, saying adherence to proper plucking procedures had helped improve leaf quality.

He said Rukuriri farmers had recorded their best payment in three years, attributing the performance partly to the leadership of Mr Njeru.

However, in Meru and Tharaka Nithi counties, farmers and factory directors said the payments remained disappointing, citing rising production costs, taxes and disruptions to international trade.

Imenti factory was the best payer in the two counties at Sh48 per kilogramme, followed by Kiegoi at Sh45.70. Githongo and Kinoro paid Sh37 each, while Kionyo paid Sh36 and Weru Sh34.70. Igembe paid Sh36 per kilogramme, while Michiimikuru factory in Tigania East recorded the lowest rate at Sh20.

Batista Kanyaru, the chairman of tea directors in Zone Seven, called on the national government to scrap the 0.8 per cent levy imposed on tea, arguing that the tax burden and higher regulatory costs had contributed to lower returns.

“We have had a rise in production because of the taxes. The 0.8 per cent levy and the Kenya Bureau of Standards levy have also increased, from Sh400,000 to Sh4 million, a big jump,” he said.

Mr Kanyaru urged the government to reduce the taxes and called on farmers to improve the quality of their tea to secure better prices in the international market.

He also cited disruptions linked to the Iran-US conflict and the closure of the Strait of Hormuz, saying tea shipments had been rerouted through longer routes, increasing transportation costs.

Lawyer Ernest “Mkulima” Kimaita accused political leaders of failing to protect farmers from levies that he said were making Kenyan tea less competitive.

He said stakeholders had opposed the taxes, but the proposals were passed by Parliament despite concerns about their impact on growers.

Mr Kimaita also questioned the introduction of the 0.8 per cent levy through a Gazette notice issued by the Agriculture Cabinet Secretary on April 1, following consideration by the National Assembly's Delegated Legislation Committee.

He called for concerted action to rescue the tea sector, warning that farmers continued to bear the burden of production costs without commensurate financial returns.

Lawyer Mugambi Imanyara similarly accused Meru MPs of failing to adequately defend farmers against what he termed oppressive levies.

Abogeta West MCA Dennis “DMK” Kiogora also called for the removal of the tax, while farmer Daniel Kiogora urged the government to expand Kenya's tea markets in addition to reducing the tax burden.

“We need better prices and expansion of the tea markets,” he said.

The latest payments have renewed calls for the government and tea sector stakeholders to address production costs, improve market access and review taxes and levies blamed for reducing farmers' earnings.