Ruto unveils Sh3.7bn rescue package to bridge tea bonus gap in Gusii, Rift Valley

Tea farmers in Gusii and the Rift Valley have received a reprieve after President William Ruto announced a Sh3.7 billion investment to address longstanding challenges in the sector, following dismal bonus payments that have seen some growers earn as little as Sh11 per kilogramme.

The President said the funding would help modernise tea factories, improve productivity and consequently narrow the glaring disparities in bonus payments between farmers in the West and East Rift regions.

President Ruto was responding to concerns raised by Gusii leaders, who said tea farmers in the region felt discriminated against, having received significantly lower bonuses than their counterparts in other parts of the country.

The leaders called for fairness in government policies, particularly in the tea sector, which remains the backbone of the local economy and a lifeline for thousands of households.

Farmers in the East Rift region, which includes Mt Kenya, have been receiving bonuses of up to Sh60 per kilogram, compared with the meagre payments recorded in Gusii and the West Rift.

Speaking at Nyamaiya grounds in Nyamira County, President Ruto said the government had already released Sh1.2 billion to support tea factories, with a further Sh2.5 billion earmarked for the next financial year.

“We faced many challenges in the tea sector. Tea leaves had been delayed at the Mombasa auction for more than three years, but that is now a thing of the past. The average tea price was Sh36, but it is now Sh57,” said President Ruto.

However, he acknowledged that farmers in the West Rift region, which encompasses parts of the Rift Valley and Gusii, continued to grapple with lower average tea prices.

“That’s why my government has allocated Sh1.2 billion this year to factories. Many factories in the West Rift have old, dilapidated infrastructure. These factories need to support farmers, modernise and increase their productivity,” said President Ruto.

He added that the additional funding would help bridge the longstanding divide between the two regions.

“We will allocate an additional Sh2.5 billion in the next financial year to ensure all factories in the West Rift achieve productivity levels comparable to those in the East Rift, so that bonuses are equitable between the two regions. The challenges and disparities between the east and west did not start with my administration; they have existed for ages. However, as President, I am committed to finding solutions.”

The President also identified high energy costs as another major obstacle facing tea factories in the West Rift, noting that many continued to rely on expensive electricity to run their operations.

“Many factories still rely on expensive electricity. We will assist them in transitioning to solar energy to reduce costs,” he said.

President Ruto further outlined other interventions his administration had introduced to benefit farmers, including the registration of all agricultural producers, reducing the cost of fertiliser from Sh7,000 to Sh2,000 and eliminating brokers.

Gusii leaders, among them Kisii Governor Simba Arati, Kisii Woman Representative Dorice Aburi and nominated Member of Parliament (MP) Irene Nyakerario Mayaka, challenged President Ruto to ensure that the United Democratic Alliance's new slogan, Usawa ni Sawa, translated into tangible equality for all, including tea farmers.

Their concerns come amid growing discontent over the disparities in tea earnings, with legislators from Kisii and Nyamira affiliated with the broad-based government last month expressing outrage at the low bonuses paid to farmers in the region.

The lawmakers accused the Kenya Tea Development Agency (KTDA) of discriminating against Gusii tea farmers, saying growers in the region had received as little as Sh12 per kilogram, against payments of up to Sh60 per kilogram in Central Kenya.

During a heated session in Parliament, the MPs warned that the disparities had fuelled resentment towards the government and made it increasingly difficult for them to engage with their constituents.

They called for an urgent investigation by the National Assembly Agriculture Committee, insisting that United Democratic Alliance’s (UDA) Usawa ni Sawa (Equality is Key) slogan must translate into fairness for farmers across the country.

UDA National Treasurer Japheth Nyakundi, who is also Kitutu Chache North MP, Kisii Woman Representative Dorice Aburi, Nyamira Woman Representative Jerusha Momanyi and West Mugirango MP Stephen Mogaka were among those who raised the concerns.

Tea bonuses, commonly known as the second payment, are determined independently by each Kenya Tea Development Agency (KTDA)-managed factory, based on its annual financial performance.

The payment represents the proceeds earned from selling processed tea at the Mombasa Tea Auction or through direct sales over the financial year, which runs from July to June, after deducting factory operating expenses and the initial monthly payments already made to farmers.

The remaining amount is then distributed among growers according to the kilograms of green leaf they delivered to their respective factories.

The price fetched by a factory at auction is one of the most significant determinants of farmers' earnings, with tea from high-altitude growing zones often attracting premium prices.

A recent inquiry by the National Assembly Departmental Committee on Agriculture and Livestock established significant regional disparities in tea prices.

During the 2024/25 financial year, tea from the East Rift fetched an average of $2.95 per kilogramme at auction, compared with $1.78 per kilogramme for tea from the West Rift.

Despite accounting for approximately 70 per cent of national tea production, the western region continues to face challenges including lower-grade tea quality, higher production costs and tea hawking. Key export markets such as Pakistan and Egypt also favour grades produced in the East Rift.

To address the disparities, the committee recommended replacing inefficient factory machinery, auditing local hydropower projects, conducting lifestyle audits of factory management and expanding efforts to develop global markets.

It also called for new legal frameworks to help stabilise farmers' earnings and address structural inequalities within the tea industry.

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