It is going to be a tough 2025 for tea farmers, as their earnings are expected to drop from January.
Agriculture Principal Secretary Paul Ronoh revealed that the drop in earnings is due to the regained strength of the Kenyan shilling against the dollar.
“I want to tell our farmers that this time around there will be some challenges in the sector because of the dollar rate. We sell our tea in dollars, and the dollar has come down from Ksh160 to Ksh130, so there will be some adjustments in the earnings here and there,” PS Ronoh revealed.
To cushion tea farmers from the adverse effects of the dollar rate effect, the PS has recommended that the farmers and sector at large work hard to ensure that they maintain the tea prices.
Agriculture Principal Secretary Dr.Paul Ronoh at a past event in Nairobi, 25 September 2024
Photo
Dr. Paul Ronoh
Tea is one of Kenya’s top exporters worldwide, and the country relies on tea exports for a large portion of its foreign exchange earnings.
In 2024, Kenya’s tea exports surged, with volumes increasing by 19 per cent in the first quarter alone.
By the first half of 2024, Kenya’s tea earnings rose by approximately Ksh102.4 billion compared to around Ksh87 billion million during the same period in 2023.
The relationship between tea exports and dollar inflows is vital to Kenya’s fiscal stability, especially amid the fluctuating dollar market.
As of December 5, the Kenya shilling remained stable against major international and regional currencies, it exchanged at Ksh129 per US dollar.
During the press briefing on Saturday, the PS revealed that the tea farmers, through the Kenya Tea Development Agency (KTDA), and the government, will be refunded the money that was deducted from their fertilisers this December.
“We are happy to report that our tea farmers, through KTDA, and the government will be refunded the money which was deducted for the fertilisers this month, as early as next week,” the PS revealed.
This development comes barely two weeks after Deputy President Kithure Kindiki announced that the government had released Ksh2 billion for fertiliser subsidy.
The subsidy reduced the price of fertiliser from Ksh3400 per 50kg bag to Ksh2500.
Farmers Building along Moi Avenue in Nairobi that houses KTDA headquarters.