Tea Farmers to earn Ksh78 Bn from tea sales FY 2016/17
By David Indeje On September 20, 2017
Kenya’s Smallholder tea farmers earned KSh78.3 billion from the sale of tea during the 2016/17 financial year according to the Kenya Tea Development Agency (KTDA). The over 611,327 farmers pay translates to 76 percent average revenue paid to them. According to KTDA, there was a 20.8 percent decline of the crop due to the severe drought which hit the country earlier in the year. “As a result of the drought, green leaf production dropped to 976.3 million kilogrammes from 1.2 billion kilogrammes in 2016.” Out of the KSh78.3 billion, the farmers under KTDA, in the 15 tea-growing counties, are set to receive KSh59.7 billion in total payments. However, this is a KSh59.7 billion drop in the period to June, decline from KSh84 billion compared to a similar period in 2016. Statistics from the Tea Directorate in August indicated that global tea exports in Kenya experienced an 18 percent drop since the beginning of the year to July due to the severe drought.
The volume of tea exported between January and July declined from 314 million kilograms in a similar period last year to 257 million kilograms in the period under review.
The cumulative production of tea n for the period January-July 2017 was significantly lower at 232.47 Million kilograms against 280.09 Million kilograms recorded during the corresponding period of 2016.