Superb year for tea farmers as yields increase to Sh84 billion - VIDEO

Tea farmers are set to earn a record Sh84 billion from leaf delivered this season, marking the second year of improved earnings, helped by a stable exchange rate and high pricing of the commodity in the world market.

The earnings are Sh21 billion more than the gains recorded last season where Kenya Tea Development Agency (KTDA) announced a revenue of Sh63 billion. 

The industry performance announced yesterday that growers affiliated to the agency will receive Sh44.72 billion in the second round of payment, popularly known as bonus.

This is a major increase compared to the Sh28 billion they earned as the second payment in a similar period the previous year.

“Our performance this year has improved compared to last year mainly because of the strong dollar and good market prices, becoming the highest figure that we have ever earned in terms of revenue,” said KTDA managing director Lerionka Tiampati.

On average, a farmer will earn Sh36 per kilogramme of tea as the second payment compared to Sh27 that they earned in the previous year.

The highest paid farmer will earn a net of Sh165,639 per acre in a year, an average grower will take home Sh123,324 while the lowest paid will earn a net of Sh73,414 per acre.

Farmers in Region One, which comprises Kiambu and Thika will rake in a total of Sh12 billion up from Sh8 billion last year. While those in region seven that covers Kitale and Nandi will earn Sh2.2 billion up from Sh1.3 in the previous year.

A section of farmers in the North Rift are, however, unhappy with these earnings noting that they are too low compared to other regions.

Growers in Chebut/Kaptumo will earn Sh26 per kilogramme for the second payment and they are up in arms over the huge deductions that have been made on their sweat.

“It is saddening that we will earn Sh26 per kilogramme. We blame our directors on the huge deductions that they have made on the bonus, which has heavily eaten into our earnings,” said Mr Charles Kering, a farmer in Nandi This season’s record earnings have placed Kenya at position one on payment to farmers among the major growing nations, having waged the growers an overall average of Sh50 per kilogramme, followed by Sri-Lanka at Sh48 becoming position two globally.

In 2015 ranking, Sri-Lanka was placed on top having paid its farmers Sh49 per kilogramme compared to Kenya’s Sh41 for the same quantity, placing the country at position two.

Sri-Lanka is the world’s leading tea producer with Kenya coming in at number two. However, Kenya is the leading exporter of tea and sells 95 per cent of its leaves in the world market.

The Kenyan shilling has been weakening against the US dollar since January last year and is currently trading at Sh101 against the greenback, bringing relief to exporters.