By Janet Nyamwamu
West Mugirango MP Stephen Mogaka has asked Parliament to include Kebirigo and Gianchore tea factories in its inquiry into tea farmers’ earnings amid concerns over bonus payments and factory borrowing.
Speaking in the National Assembly, Mogaka said farmers in his constituency had repeatedly sought answers from their elected leaders over the management of the tea sector and the earnings from their produce.
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“I stood because this tea issue is a perennial problem,” Mogaka told the House, saying farmers regularly questioned why Parliament had not intervened more decisively.
He urged Parliament to ensure that the ongoing inquiry covers the two factories serving West Mugirango so that he could respond to farmers’ concerns.
Mogaka also questioned the financial management of tea factories, particularly allegations that some directors were borrowing money to finance annual bonus payments.
He argued that bonus payments should reflect profits generated by factory operations rather than create unsustainable financial obligations. He also noted that some disputes in the sector had ended up in court.
His remarks come amid renewed debate over differences in tea bonus rates across the country and the financial position of smallholder tea factories.
On October 9, the Kenya Tea Development Agency (KTDA) announced the release of the 2025/2026 financial year’s second payments alongside September monthly payments. Publicly reported factory declarations showed bonus rates ranging from about Sh12 to Sh50 per kilogramme, depending on the factory.
A Tea Board of Kenya (TBK) audit reported in August also raised questions about borrowing by KTDA-managed factories. According to the reported audit findings, 69 factories listed in a loan schedule had outstanding balances totalling Sh34.05 billion as of December 31, 2025.
However, KTDA chairman Enos Njeru disputed the characterisation of factory borrowing as being primarily intended to finance bonuses, saying credit facilities also supported operations, machinery and expansion projects.
The National Assembly’s Departmental Committee on Agriculture and Livestock previously held a public inquiry into tea pricing in November 2025, including consultations with farmers and visits to factories in Nyamira and other tea-growing counties.
The inquiry sought to establish the reasons for differences in bonus payments and examine the factors affecting factory performance and farmers’ returns.
Mogaka said Parliament’s ongoing consideration of the matter offered an opportunity to address the grievances of West Mugirango tea growers.
