Tea farmers are set to benefit after the government directed the Kenya Tea Development Agency to release Sh2.7 billion recovered from two collapsed banks. The funds, released by the Kenya Deposit Insurance Corporation after President William Ruto’s intervention on Sept. 11, 2025, will be paid to farmers as an additional bonus and reflected as a government refund in their October payslips.
The refund comes amid concerns over low bonus rates and rising production costs. Agriculture Principal Secretary Kipronoh Ronoh said the government is also providing subsidized fertilizers, removing VAT on tea and packaging, and supporting factory upgrades. The government urged KTDA to address high operating costs and internal inefficiencies to improve farmer earnings.
The refund comes amid concerns over low bonus rates and rising production costs. Agriculture Principal Secretary Kipronoh Ronoh said the government is also providing subsidized fertilizers, removing VAT on tea and packaging, and supporting factory upgrades. The government urged KTDA to address high operating costs and internal inefficiencies to improve farmer earnings.
