Agency leaves mini-bonus tea pay to factories

Small-scale tea farmers are uncertain if they will be paid a mini-bonus next week as directed by President Uhuru Kenyatta.

Factories in parts of the tea-rich Rift Valley have ruled out the pay while those in Meru and Central Kenya have made plans to pay out.

Kenya Tea Development Agency, said it is up to individual factories to decide whether to pay or not. The agency, which runs 65 factories country-wide on behalf of farmers, introduced the interim bonus after farmers complained of financial difficulties in maintaining their crop and the time difference before the main and final pay around October each year.

“We got a directive to pay and it is up to the factory boards to decide. We are awaiting for resolutions by the factory boards to pay or not to pay,” said Mr Albert Otochi, the agency’s head of marketing.

He said the factories would also decide the source of funds “which include borrowing. There is still time” said Mr Otochi.

In March/ April, on account of depressed international tea prices at the Mombasa auction among other reasons, the agency advised factories not to pay the mini bonus and instead re-invest earnings.

Relief to farmers

But a meeting at State House between the government and stakeholders on June 11, directed payment of a mini bonus by the end of the month.

The announcement came as a relief to farmers, after an earlier cancellation.

However, Agriculture Secretary Felix Koskei Tuesday insisted the government directive stands.

“We discussed with tea agency and agreed that they make available a facility for payment. Most factories in Nyeri, Embu and Meru region have paid. Those west of the Rift Valley have politicised the issue,” he said in a telephone interview.