Fuel Costs and Global Disruptions Threaten Tea Farmers’ Earnings

The Kenya Tea Development Agency (KTDA) has raised alarm over rising fuel prices and global disruptions, warning that the twin pressures are set to significantly reduce tea farmers’ earnings this year.

Speaking in Nairobi, KTDA National Chairman Enos Njeru said the steady increase in fuel costs is already straining the tea sector, which is heavily dependent on transportation and energy. The situation, he noted, has been worsened by ongoing geopolitical tensions in the Middle East that have disrupted key export routes.

“These disruptions have led to shipping delays and significantly higher freight and insurance costs,” Njeru said, adding that the cumulative effect will likely reduce returns to farmers.

The chairman made the remarks during a meeting in Naivasha with chairpersons of KTDA-managed factories. He explained that the ripple effects of high fuel prices are expected to extend beyond logistics, with fertilizer costs also projected to rise in the coming months. Many fertilizer components are oil-based, and global shipping rates remain elevated, further compounding the problem.

Njeru, who was accompanied by members of the KTDA Holdings Board, spoke during a labour management training organized by the Federation of Kenya Employers (FKE). The training aims to improve efficiency in factory operations amid rising costs.

Also addressing the gathering, KTDA Board Vice Chairman Samson Mosonik emphasized that labour remains the single largest cost in tea production. He urged factory managers to adopt efficient labour practices to boost productivity and protect farmers’ incomes.

In response to the mounting challenges, Njeru called on factory boards and management teams to implement immediate austerity measures to cut operational costs. He also appealed to the government to consider reducing taxes on tea, describing the crop as one of the most heavily taxed despite its importance to the economy.

“We need targeted interventions to cushion farmers from the current economic pressures,” he said.

Kenya’s tea sector, a major foreign exchange earner, now faces increasing uncertainty as global and domestic cost pressures converge, raising concerns about sustainability and farmer livelihoods.