KTDA Sets Monthly Payment Rates for Tea Farmers

The Kenya Tea Development Agency (KTDA) has confirmed the decision to keep monthly payment rates for tea farmers in Nyamira County at their current rates.

In a notice published on Thursday, January 5, tea factories in Zone 10, Nyamira County, will retain the existing monthly green leaf payment rate of KSh24 per kilogram for February 2026 following a review of their financial standing.

The decision was communicated in a notice released in Nairobi on Thursday, February 5, 2026, outlining the outcome of internal assessments conducted by factory boards in the region.

According to KTDA, the determination to maintain the current rate followed a detailed evaluation of prevailing market conditions and the cash flow position of the factories.

The agency stated that the factories opted to keep the rate unchanged as they continue to manage financial challenges arising from recent sector performance.

“Tea factories in Zone 10, Nyamira County, will maintain the current monthly green leaf payment rate of Ksh 24 per kilogram after reviewing their current financial status,” the statement read.

KTDA explained that the decision reflects the financial realities factories faced in the 2024/2025 financial year, a difficult trading environment that limited revenue inflows and strained liquidity.

“The factories in the county realised low tea absorption and prices in the 2024/2025 financial year which negatively affected their cash flows,” KTDA said.

KTDA On Declining Green Leaf Deliveries

Another key concern in the announcement was the continued decline in green leaf deliveries to factories in the region.

It was reported that boards overseeing Nyansiongo, Nyankoba, Sanganyi, Kiberigo, and Gianchore factories have observed a downward trend in the volume of tea delivered by farmers.

The agency noted that reduced deliveries present additional operational challenges for factories, as lower throughput can increase production costs and further strain financial performance.

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“Also pointed out that green leaf deliveries are continuing to decrease, which will have an added strain on the operations of factories,” it stated.

Despite these challenges, the agency assured farmers about the medium-term outlook, encouraging continued tea deliveries, noting that improved market conditions could lead to better prices in the coming months.

Farmers were advised to continue supplying tea to realize the benefits of higher prices expected in the next few months.

Market Performance and Cash Flow Pressures

KTDA linked the financial strain experienced by factories in Nyamira County to weak market absorption and lower tea prices recorded during the previous financial year.

Also Read: KTDA Addresses Claims of Missing Ksh 1.03B in Tea Farmers’ Funds

The agency noted that these conditions directly affected factory earnings, reducing the funds available to support higher monthly payments to farmers.

The agency indicated that subdued demand in key markets, combined with lower auction prices, resulted in reduced income for factories across the zone.

As a result, factory boards opted for a cautious approach in setting payment rates to ensure operational stability.

KTDA emphasized that the decision to maintain the rate was not taken lightly but was informed by the need to balance farmer payments with the sustainability of factory operations amid ongoing market uncertainty.

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