Thumaita Tea Factory Farmers Resume Tea Plucking After Successful Negotiations

Tea farming is an essential economic activity in Kenya, providing livelihoods to millions of small-scale farmers. In the scenic, tea-growing highlands of Kirinyaga County, farmers affiliated with the Thumaita Tea Factory recently found themselves embroiled in a tense standoff over payments. However, after days of boycott and disruptions in supply, the situation has taken a turn for the better as farmers are set to resume tea plucking and supply of green leaf to the factory.

On Tuesday, October 8, 2024, farmers and factory representatives reached an agreement following successful talks involving the Thumaita Tea Factory Board of Directors, farmer representatives, the Kenya Tea Development Agency (KTDA), and the Tea Board of Kenya (TBK). This resolution is a relief to the farmers, many of whom rely on tea as their primary source of income. However, the road to resolution was not easy, and the stalemate revealed significant challenges within the tea sector.

The Stalemate and Economic Impact

The Thumaita Tea Factory had not received any tea for the last 13 days due to a boycott that saw disruptions in factory operations. This suspension of tea plucking came as farmers protested against the delayed second payment, known in the industry as the “bonus.” The bonus payments, which come after the first payment made immediately after delivery of the green leaf, are critical for farmers’ financial planning, often coinciding with school fees and other large expenditures.

The prolonged boycott caused significant economic losses. The Tea Board of Kenya estimated that the factory lost over Ksh 115 million in revenue during the 13 days it was out of operation. This figure represents both the loss of income for the factory and the missed earnings for the tea farmers. With tea being the lifeblood of many households in the region, the boycott risked creating financial instability for numerous families, while also potentially threatening the sustainability of the factory’s operations.

Resolution Reached

The breakthrough came after a meeting that brought together all key stakeholders, including the KTDA, the factory board, and the Tea Board of Kenya. At the core of the agreement was a commitment by KTDA to submit the Thumaita Tea Factory’s books of accounts to TBK for review by October 9, 2024. The Tea Board will then have 30 days to review the accounts and provide feedback, paving the way for the resolution of any lingering payment issues.

The Special General Meeting (SGM) that had been planned to address the crisis has been put on hold until the TBK completes its review of the accounts. This decision was reached to ensure that all parties are working with accurate and up-to-date financial information, which is expected to foster trust between the factory management and the farmers.

Call to End Tea Hawking

During the negotiations, Thumaita Tea Factory Chairman, Engineer Richard Magu, called on farmers to stop tea hawking, which had become a growing concern in the region. Tea hawking, the practice of selling tea leaves to middlemen or other buyers outside the KTDA-regulated supply chain, was cited as detrimental to both farmers and the tea industry. According to Magu, tea hawking undermines the quality of tea being sold, reduces the earnings of registered factories, and complicates the management of farmer payments.

“Tea hawking in the Thumaita catchment area must stop with immediate effect. TBK and security organs will decisively deal with the matter of hawking alongside anyone inciting farmers not to pluck tea,” Magu stated. His words echoed the factory board’s belief that the resolution of the payment stalemate would only be effective if farmers resumed plucking and committed to selling through the KTDA system.

Magu’s warning highlights a common issue in Kenya’s tea industry, where farmers, frustrated with delays or disputes, turn to alternative markets. While hawking may offer immediate cash, the long-term effects are often negative, as it can damage relationships with factories and reduce collective bargaining power.

Farmers’ Perspectives and Agreement to Resume Plucking

For the farmers, the agreement to resume plucking tea is seen as a step in the right direction. Many were feeling the pinch of lost income and were eager to return to work. Simon Njagi, a farmer from the Thumaita area, expressed his relief after the meeting.

“We have agreed to resume tea plucking as the matter is being addressed. Tea is our primary source of income,” said Njagi, underscoring the importance of a quick resolution for farmers.

The TBK also played a crucial role in facilitating the discussions. John Kariuki, a representative from the board, reiterated their commitment to resolving the issues in a way that ensures the continued flourishing of Kenya’s tea sector.

“TBK will continue to facilitate dialogue and ensure the tea sector flourishes. We are optimistic that the Thumaita Tea Factory issue will be resolved amicably. Farmers have raised valid issues, and we are asking them to go back to their farms, pluck tea, and deliver it to buying centers so that they continue to earn as we address the issues they have raised,” Kariuki said.

The Importance of the Tea Industry in Kirinyaga

The Thumaita Tea Factory, located in Kirinyaga County, plays a pivotal role in the local economy. It is not only a source of employment for many local residents but also contributes significantly to Kenya’s overall tea industry, which is one of the country’s largest foreign exchange earners.

Tea farming in Kirinyaga is carried out by smallholder farmers, many of whom own less than an acre of land. These farmers depend on tea for their day-to-day living, and disruptions such as the recent boycott can have devastating consequences. The factory itself is part of the Kenya Tea Development Agency (KTDA) network, which has been instrumental in organizing small-scale farmers into a more efficient, commercially viable system.

In recent years, the KTDA has faced increasing scrutiny from farmers and stakeholders who argue that the agency needs to do more to ensure timely payments, transparency in financial management, and better terms for farmers. The Thumaita dispute is one example of a broader set of challenges facing the tea industry as farmers demand greater accountability and fairness.

Moving Forward

With the agreement reached, attention now turns to how effectively the KTDA and the Tea Board of Kenya will manage the resolution of the payment issues. The review of the factory’s books of accounts by the TBK is a critical step in restoring trust between farmers and the factory management. Both sides are eager to avoid future disruptions, and it is expected that TBK’s involvement will bring greater transparency to the financial operations of the factory.

The next 30 days will be crucial as the Tea Board reviews the accounts and issues its feedback. In the meantime, the resumption of tea plucking will bring much-needed relief to farmers who rely on the income generated from their tea farms.

For the broader tea industry in Kenya, the resolution of the Thumaita Tea Factory crisis could serve as a blueprint for handling similar disputes in other parts of the country. The industry remains one of Kenya’s most vital economic pillars, and ensuring the welfare of farmers while maintaining sustainable operations at the factory level is key to its future success.

As the farmers return to the fields, there is a sense of cautious optimism that the issues raised during the stalemate will be addressed satisfactorily. For now, the focus is back on what matters most to the farmers: harvesting and selling their tea to sustain their livelihoods and ensure the continued prosperity of the tea sector in Kirinyaga County and beyond.