KTDA chairman dismisses claims factories borrowed loans to pay farmers’ bonuses
Kenya Tea Development Agency (KTDA) National Chairman Enos Njeru has dismissed claims that tea factories have borrowed loans specifically to finance farmers’ bonus payments. Speaking at Kithare in Runyenjes subcounty on Tuesday, August 25, 2026, Njeru said although tea factories do borrow money, the loans are obtained for various purposes, including factory operations, capital investments […]
Kenya Tea Development Agency (KTDA) National Chairman Enos Njeru has firmly rejected allegations that tea factories took out loans specifically to fund farmers' bonuses. Addressing farmers in Kithare during a visit to Runyenjes subcounty on August 25, 2026, Njeru clarified that while tea factories do borrow money for various purposes, such as operations, capital investments and expansion, this borrowing should not be automatically linked to farmers' bonuses.
Njeru emphasized that it is misleading to claim that factories are borrowing loans to pay farmers their bonuses, pointing out that the financial situation and borrowing needs of each factory can vary significantly. He explained that factories in the West Rift region may sometimes need financing to address cash-flow gaps due to low tea absorption rates and weaker prices, but this does not mean all factories behave this way.
An example he gave was Rukuriri Tea Factory, which took out a Ksh150 million loan to install orthodox tea processing machinery, noting that this loan is almost fully repaid. Njeru dismissed claims of a Ksh300 million loan, stating that the actual amount is much lower. He also highlighted that most factories in the East Rift have stronger financial positions to cover their operational costs and farmers' payments while still investing in projects that boost efficiency and increase returns for farmers.
Njeru's statements come in response to concerns that farmers might receive smaller bonuses due to factories still servicing loans from previous payouts. He stressed that each factory's financial position should be evaluated individually and that borrowing by a tea factory should not be assumed to be for paying farmers' bonuses. Njeru urged patience while investigations into a Sh322 million fertilizer transaction are ongoing, stating that the outcome of the Directorate of Criminal Investigations (DCI) probe will clarify the facts.
He reaffirmed KTDA's dedication to transparency, sound governance, and protecting the interests of tea farmers.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
