Nairobi — Tea delivered by smallholder farmers to the Kenya Tea Development Agency (KTDA)-managed factories increased by 15.2 percent in the seven months to last month, attributed to favorable weather conditions, among other factors.
KTDA's latest data shows that farmers delivered 763.2 million kilos of Greenleaf tea between June 2023 and January 31, 2024.
This was an improvement compared to the 662.6 million kilos of the commodity delivered to KTDA processors during a similar period last year.
The increase in processed teas, especially in the West of Rift, is due to the monthly advance payment structure where factories have increased their rates, attracting more green leaf.
The factories increased their rates from Sh20 to Sh24 for one kilogram of green leaf, while factories in the east of Rift increased their rates from Sh21 to Sh25 in January 2024.
Higher deliveries saw the agency sell 152 million kg of processed tea, compared to 148 million kg within the same period last year.
"We are working round the clock to push as much tea as possible working with other stakeholders including government agencies. Our single focus remains improving the earnings for the farmers.," KTDA Group CEO Wilson Muthaura said.
The average price of KTDA teas within the same period went up by 3 percent, from $2.70 per kg to $2.78.
Over the same period, there have been gains from favorable forex exchange rates, which are expected to spur earnings for the farmers compared to the same period last year if the sales trend is maintained.
"The global tea market faces headwinds, with rising production costs and fluctuating demand," continued Muthaura.
"Despite these challenges, KTDA remains focused on maximizing value for our smallholder farmers. We continue to work tirelessly to push as much tea as possible while exploring new markets and value-added opportunities."
In September 2023, KTDA announced a record Sh44.15 billion final payout to smallholder tea farmers.
This final payout lifted farmers' total earnings for the year by 7.6 percent to an all-time high of Sh67.7 billion from Sh62.89 billion at the same time in 2022.
