Kenya Tea Development Agency management has confirmed that tea factories in Nyamira County will retain the current green leaf payment rate, citing weak prices and low absorption that strained cash flows, even as factory boards urge farmers to maintain quality and volumes in anticipation of better returns.
In a statement issued in Nairobi on Thursday, February 5, 2026, KTDA Management Services Limited said factories in the zone had agreed to maintain the current monthly green leaf payment rate of Sh24 per kilogram after reviewing their current financial status.
The decision affects five factories in the county, Nyansiongo, Nyankoba, Sanganyi, Kiberigo and Gianchore, whose boards assessed performance over the 2024/2025 financial year and concluded that prevailing market conditions limited their ability to raise payouts.
According to the statement, the factories realised low tea absorption and prices in the 2024/2025 financial year which negatively affected their cash flows.
The assessment points to subdued demand and weaker auction prices, factors that have constrained earnings across parts of the smallholder tea sector.
Factory leadership said the combination of low absorption and depressed prices had made it necessary to hold the payment rate steady, at least in the short term, as they work to stabilise finances and manage operating costs.
The boards also noted changes on the supply side, observing a reduction in green leaf deliveries.
They encouraged farmers to continue supplying tea, stressing that sustained deliveries would position growers to benefit once market conditions improve.
In their message to farmers, factory boards urged patience, signalling that the current rate is not permanent.
“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.
The prospect of a review offers some reassurance to growers, many of whom rely on monthly payments to meet household needs.
Factory managers said their focus remains on improving performance so that higher returns can be shared with farmers when feasible.
Quality emerged as a key theme in the statement, with factory leaders calling on farmers “to uphold good plucking practices to enhance tea quality and improve auction prices”.
They linked better quality leaf to stronger prices at auction, which in turn could support improved payments.
The emphasis on quality reflects a broader industry push to maximise value in a competitive global market.
By improving leaf standards, factories hope to command better prices and offset the effects of lower volumes and weak demand.
KTDA Management Services Limited said efforts were ongoing to improve overall factory performance, even as boards balance the need to support farmers with the realities of factory finances.
The announcement reinforces the challenges facing tea producers in Nyamira County, where fluctuations in global tea markets directly affect farm incomes.
Low absorption, when buyers take up less tea at auction, can quickly translate into reduced cash inflows for factories, limiting their capacity to pay higher rates.
For now, the Sh24 per kilogram rate provides continuity and predictability, even as farmers await signs of recovery.
Factory leaders said their commitment remains to review payments once the financial position improves, suggesting that any uplift will depend on stronger prices, better absorption and sustained deliveries.
KTDA Corporate Communications said the update was intended to keep farmers informed of the situation and encourage collaboration between growers and factory management as they navigate a challenging period for the tea sector.
