Kenya Tea Development Agency Announces Final Payments for 2024/2025 Financial Year
The Kenya Tea Development Agency (KTDA) has officially announced that smallholder tea farmers will receive their final payment for the 2024/2025 financial year by October 15, 2025. This announcement was made through a notice issued on October 8, 2025, and marks the culmination of the financial year’s accounts and the declaration of final green leaf payments by respective factory boards.
KTDA stated that the payments will be credited directly to farmers’ bank accounts alongside proceeds from green leaf deliveries made in September 2025. The agency emphasized that the release of these funds will occur no later than October 15, 2025, following the conclusion of the 2024-25 financial year accounts and the subsequent declaration of the final green leaf payment by the factory boards of directors.
In addition to the regular payments, the payout will include funds recovered from Imperial Bank and Chase Bank, both of which have been under liquidation for several years. These funds, amounting to Sh2.7 billion, were recently released by the Kenya Deposit Insurance Corporation (KDIC) after government intervention.
KTDA expressed gratitude for the government’s efforts in facilitating the recovery of these funds, which had been trapped since the collapse of the two banks. President William Ruto, who attended an event at State House last month, urged the agency to ensure that the recovered money reaches the farmers promptly.
This initiative aligns with the directive from Agriculture Cabinet Secretary Paul Ronoh, who instructed that the money be paid to farmers as part of their 2024/25 bonuses. PS Ronoh directed KTDA CEO Wilson Muthaura to ensure that the funds are distributed equitably to farmers and reflected in their payslips as GoK Refund.
Farmers will see the details of the payments reflected in their official payslips and through their KTDA mobile app accounts, ensuring transparency and accessibility of information regarding the final payout. This move is expected to bring relief to thousands of smallholder farmers across the country.
Regional Variations in Payouts
Despite the overall positive news, some regions reported lower payouts. For instance, tea factories in Bomet recorded some of the lowest payouts in the country, with Mogogosiek at Sh12 per kilogram, and Kapkoros and Kapset at Sh13 per kilogram.
KTDA defended the drop in prices, stating that it did not affect one particular region. The agency reported that tea from the East Rift and Kiambu fetched Sh371 per kilo, a decrease of Sh46 from last year. Murang’a earned Sh376, down Sh42; Nyeri Sh388, down Sh42; Kirinyaga Sh400, down Sh38; Embu Sh404, down Sh34; and Meru Sh381, down Sh46.
Impact on Farmers and Future Outlook
The announcement of the final payments is a significant milestone for smallholder farmers, providing them with much-needed financial stability. However, the variations in regional payouts highlight the challenges faced by different areas within the tea industry.
KTDA remains committed to supporting its farmers and ensuring fair distribution of resources. The agency continues to work closely with stakeholders to address any disparities and improve the overall performance of the tea sector.
As the financial year concludes, the focus shifts to planning for the next cycle, with an emphasis on sustainability and growth. KTDA’s efforts to ensure transparency and equitable distribution of funds set a positive precedent for future operations.
