Parliament probes rift in tea prices as farmers decry unfair bonus disparities

The Agriculture and Livestock Committee of Parliament has launched inquiry into tea pricing following persistent complaints over disparities in bonus payments between tea factories.

The committee dispatched two delegations to the East and West of the Rift Valley regions to gather firsthand information and compare the factors driving the widening gap that has

left thousands of smallholder farmers disgruntled.

In Bomet County, a delegation led by Committee Chairperson John Mutunga toured Motigo Tea Factory, where farmers from Zone 9 expressed deep frustration over what they

termed systemic injustices in the Kenya Tea Development Authority (KTDA).

They accused KTDA of skewed representation, saying farmers in the western region are grossly underrepresented in decision-making processes that determine their livelihood.

According to the farmers, an audit report conducted by the Tea Board of Kenya (TBK) uncovered widespread mismanagement of resources, yet no action has been taken.

“The audit report shows corruption and mismanagement of farmers’ resources by our directors. They made many decisions without involving the farmers. The report shows

directors bought land without farmers’ consent, and millions of shillings are being misappropriated through allowances,” said Josiah Kerich from Kapkoros.

“We call upon investigative agencies to investigate and find solutions, and those guilty be arrested and made to pay.”

The farmers also raised concerns over the high and increasing cost of production, which they say erodes their earnings and worsens the already low bonus payments.

Many said they have been receiving as little as Sh 13 per kilo in bonus, a figure they describe as both humiliating and unsustainable.

“We don’t have any other source of income; it is just tea that we depend on. And being paid Sh 13 for bonus is such an insult,” lamented Zeddy Mausa.

“We can’t pay school fees or even buy food to sustain our families and pay those who pluck the tea for us.”

Mutunga assured the farmers that Parliament will thoroughly investigate the matter to deliver long-term solutions.

He warned that declining earnings were pushing farmers to uproot tea bushes a troubling development for a crop that takes up to seven years to mature.

“Tea exports lead in foreign exchange earnings, and when a farmer uproots a crop that takes seven years for optimal production, there is a problem,” he said.

“We have understood that farmers are not happy. We have inspected the quality of tea here, and indeed, farmers are plucking two leaves and a bud as directed. This inquiry seeks

to establish comparable outcomes from the two regions.”

Factory leadership also weighed in. Kapkoros Group of Companies Chairperson, Robert Rono, urged the government to operationalize the 2023 Management Services Agreement

between factories and KTDA Management Services Ltd, saying factory boards are sidelined in key decisions.

“Regulatory failure and unlevelled playing fields set by TBK are affecting us negatively,” he said.

“Private processors operate without proper bush licences, and  KTDA is subjected to reserve prices at auctions unlike private entities that can sell way below reserve prices and do

not pay bonuses. We need fair play.”

The Committee also visited the Tea Research Institute (TRI), where Director Lilian Kerio highlighted environmental and policy-related factors affecting tea quality and, ultimately, bonus variations.

She blamed the problems on underfunding, noting that TRI receives no government allocation and continues to operate without the tea levy provided for in the Tea Act, 2020.

“We don’t have funding to do extensive research. We have a factory which is not functional since we lack equipment and machines,” she said.

The second delegation led by Committee Vice-Chair Brighton Yegon toured Michimikuru and Rukuriri factories in Meru and Embu. The Committee is expected to continue

engagements with farmers in Nyamira, Murang’a and Kiambu as the inquiry proceeds.