By Mandere Onyinkwa
The Kenya Tea Development Agency (KTDA) has raised concern over rising fuel prices and global supply chain disruptions, warning that the pressures are set to significantly reduce tea farmers’ earnings this year.
Speaking in Naivasha, KTDA National Chairman Enos Njeru said the surge in fuel costs is already straining the sector and could worsen in the coming months.
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“The recent increase in fuel prices is expected to negatively impact tea farmers’ earnings this year,” said Mr Njeru.
He noted that the tea industry is also grappling with external shocks, particularly the ongoing conflict in the Middle East, which has disrupted key export routes.
“The tea sector is already under pressure due to the ongoing conflict in the Middle East. The conflict has disrupted key export routes, leading to shipping delays and increased freight and insurance costs,” he said.
According to KTDA, the ripple effects of high fuel prices are likely to extend to farm inputs, especially fertiliser, much of which depends on oil-based components and global shipping.
“The rise in fuel prices is likely to drive up the cost of fertiliser… as some fertiliser components are oil-based and global shipping rates remain elevated,” Mr Njeru added.
The chairman was speaking during a meeting with chairpersons of KTDA-managed factories, held alongside a labour management training organised by the Federation of Kenya Employers (FKE).
KTDA Board Vice Chairman Samson Mosonik emphasised that labour remains the biggest cost in tea production and called for efficiency to protect farmers’ returns.
“Labour remains the highest cost in tea production and must be efficiently managed to improve productivity and enhance farmers’ earnings,” said Mr Mosonik.
KTDA has now urged factory boards to adopt austerity measures to cut operational costs and cushion farmers from the economic shocks.
At the same time, Mr Njeru called on the government to review taxation in the sector.
“Tea remains among the most heavily taxed crops, and there is need for interventions to cushion farmers from the current economic pressures,” he said.
The agency warned that without timely interventions, the combined impact of high fuel costs and global disruptions could erode profitability across the tea value chain.
