Kenya Tea Development Agency (KTDA) factory boards for Region Five, encompassing Kericho and Bomet counties, have resolved to maintain the current monthly payment rate at KES 23 per kilogram of green tea leaves. This decision followed a strategic review of the financial positions of factories within the region during a meeting held at the Kapkatet Tea Factory on Wednesday, February 4th, 2026.
The board said its decision to hold rates steady has been influenced by the strained cash flow currently facing factories. According to the announcement, the 2024/2025 financial year had low tea absorption and depressed prices, which negatively impacted the liquid assets available to KTDA institutions. Furthermore, they noted a reduction in the volume of tea arriving at the factories. The board is appealing to farmers to increase supply to maximize earnings in the coming months.
The West of Rift region, which includes Kericho and Bomet, faced a steep decline in tea prices compared to the previous year. These price drops were attributed to variations in tea quality, market demand, and higher operational cost structures.
Global demand remained suppressed, and certain high-altitude zones that typically command premium prices were still impacted by broader international market conditions.
The struggle to maintain farmer income is not a new challenge for the agency. In late 2025, KTDA reported a noticeable drop in annual bonuses for farmers across various regions due to these same market pressures.
KES 2.65B Refund to KTDA
To mitigate some of these losses, the government and the Kenya Deposit Insurance Corporation (KDIC) intervened by facilitating a KES 2.65 billion refund to KTDA farmers. This payment represented protected deposits recovered from the liquidation of Chase Bank and Imperial Bank, where tea farmers’ savings had been held. While this provided a necessary financial cushion for approximately 600,000 farmers, the underlying operational challenges of the tea sector remained.
While the monthly rate remains at KES 23 per kilogram of green tea leaf for now, the board has committed to reviewing and potentially increasing the payment in the near future as the financial position of the factories improves. To stabilize future earnings and reduce reliance on traditional CTC (Crush, Tear, Curl) teas, KTDA is actively expanding the production of orthodox teas, which typically fetch higher prices in niche global markets.
The board has urged farmers to maintain high plucking standards to enhance the quality of the tea, which remains the surest way to safeguard income and ensure competitive prices at the auction.
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