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The Kenya Tea Development Agency (KTDA) has announced that tea factories in Zone 10, Nyamira County, will maintain the current monthly green leaf payment rate of Ksh 24 per kilogram for February 2026, following a review of their financial position.
The announcement was made in a formal corporate communication issued in Nairobi on Thursday, February 5, 2026.
The decision was reached after factory boards assessed prevailing market conditions and internal cash flow realities.
KTDA indicated that the factories had opted to hold the rate steady as they navigate financial pressures linked to the performance of the tea sector in the recent financial year.
“Tea factories in Zone 10, Nyamira County, will maintain the current monthly green leaf payment rate of Ksh 24 per kilogram after reviewing their current financial status,” the statement read.
KTDA attributed the constrained position largely to weak market uptake and depressed prices recorded during the 2024/2025 financial year.
The agency noted that these factors had a direct impact on liquidity across factories in the zone.
“The factories in the county realised low tea absorption and prices in the 2024/2025 financial year which negatively affected their cash flows,” KTDA said.
Factory Issues and Poor Absorption Rate
The mutual concern of the factory boards indicated in the announcement is the diminished amount of green leaf deliveries.
The factory board managements supervising Nyansiongo, Nyankoba, Sanganyi, Kiberigo Families and Gianchore factories all observe the downward trend of deliveries from farmers.
KTDA also noted that the boards of the factories, “also pointed out that green leaf deliveries are continuing to decrease as a result will have an added strain on the operations of factories.”
In spite of the operational problems facing the factories today, factory management attempted to provide some reassurance to farmers about the medium term view.
The goal of this reassurance is to encourage farmers to continue to deliver tea to the factories until there are likely to be better market conditions in a few months.
Farmers were told by KTDA, “to continue supplying tea in order to realise benefits from better prices when they arrive in the next few months.”
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Possible Review of Payment Rates
While confirming that the Ksh 24 rate will remain in place for now, KTDA signalled that the payment structure is not permanent.
Any adjustment, however, will depend on a recovery in factory finances and improved market performance.
“While the current payment rate will remain in place for now, factory leadership indicated that the rate will be reviewed once the financial position improves,” the statement said.
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Call for Quality and Good Practices
KTDA also used the announcement to emphasise the importance of quality at the farm level, linking it directly to auction performance and factory sustainability.
Factory leaders called on growers to adhere strictly to recommended plucking standards. According to the communication, leaders urged farmers “to uphold good plucking practices to enhance tea quality and improve auction prices.”
The agency underscored that improved quality and stronger prices remain central to restoring factory performance and enhancing farmer earnings.
KTDA said these efforts form part of ongoing measures “to improve overall factory performance,” even as the sector contends with market volatility and fluctuating demand.
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KTDA House. PHOTO/Courtesy
