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KTDA DIRECTOR ATTRIBUTES BONUS DROP TO STRONGER SHILLING AGAINST DOLLAR

  • | KNA Video
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    Duration: 4:38
    Directors from the Kenya Tea Development Agency (KTDA) Zone 5, covering Kirinyaga County, have attributed the decline in tea bonus payments for the 2024/2025 financial year to the strengthening of the Kenyan shilling against the US dollar. Speaking on behalf of the zone’s leadership, Ndima Tea Factory Director John Mithamo explained that since tea is traded internationally in dollars, a stronger local currency results in lower returns once the earnings are converted to shillings. This has directly affected the bonus payouts to farmers. “Zone 5 has performed well compared to other zones across the country,” Mithamo said, urging politicians to stop using the bonus issue for political gain. He called on farmers to remain focused and continue delivering high-quality green leaf, noting that Zone 5 factories ranked among the top 15 nationally. “Last year, the dollar was selling at 160, but this year it is changing to 129, if you look at it the money must have gone down.” He added Kimunye Tea Factory Chairperson Simon Njeru echoed the sentiments, encouraging farmers to compare bonus rates across all KTDA-managed factories. He noted no factory has escaped the impact this year. All have experienced some decline compared to last year.