15 August 2018

Kenya: Tea Bonus to Go Down as Global Prices Plummet, Says KTDA

Tea farmers will earn less this year due to the reduced commodity prices at the auction in the last six months.

According to Kenya Tea Development Agency (KTDA) national chairman Peter Kanyago, farmers should not have high expectations on this year's pay as the prices in the market have been unfavourable over the last four months.

He said the prices started deteriorating in April.

At the same time, he noted that although revenue in the tea sector has increased, the pay-out rate to farmers per kilo of green leaf will be lower than it was last year.

"Generally, revenue in the tea sector has increased but I wish to tell the farmers that the prices have been declining," he noted.


Last year, the 68 affiliated factories run by the agency were paid at least Sh78.3 billion, marking a seven per cent drop from the Sh84 billion farmers earned in 2016.

The average pay-out to farmers in 2016 was Sh50.26 per kilo of green leaf delivered to factories.

However, the agency did not publish the 2017 rates.

At the same time, Mr Kanyago lamented that the Kenya Revenue Authority (KRA) is overtaxing the agency with the effects being felt by the farmers.

He argued that KRA is being unfair by demanding tax on exported tea.

"I would like to appeal to the government to address the issue of taxation and ensure that tea for export is not taxed," he said.

He also complained that KRA is also taxing farmers on interests accrued from banks, claiming they are separate from the income generated from tea sales.


Governor Obado Arrested, to Be Charged With Murder of Sharon

Migori Governor Okoth Obado will be charged in court with the murder of Rongo University student Sharon Otieno on… Read more »

See What Everyone is Watching

Copyright © 2018 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.