Kenya’s tea sector is bracing for a challenging period, with smallholder farmers likely to feel the strain of rising fuel prices in the coming year. The Kenya Tea Development Agency has cautioned that increased energy costs could significantly reduce farmers’ earnings and bonuses in 2026.
Speaking during a labour management training organised by the Federation of Kenya Employers, KTDA national chairman Enos Njeru said the ripple effects of high fuel prices are already being felt across the tea value chain.
According to Njeru, the situation is being worsened by ongoing geopolitical tensions in the Middle East, which have disrupted key export routes. This has led to shipping delays and increased freight and insurance costs, putting additional pressure on the sector.
He noted that the impact of fuel prices will soon extend to farm inputs, particularly fertiliser expected in June. With many fertiliser components derived from petroleum and global shipping costs still elevated, farmers are likely to face higher production expenses at a time when the agricultural sector is already under strain.
KTDA Board Vice Chairman Samson Mosonik pointed out that labour remains the single largest cost in tea production, urging factories to adopt more efficient workforce management practices to maintain productivity and safeguard returns to farmers.
In response to the mounting challenges, Njeru called on factory boards and management teams to implement cost-cutting measures aimed at reducing operational expenses. He also appealed to the government to review taxation on tea, arguing that the crop remains among the most heavily taxed despite its importance to the economy.
Additionally, he urged the state to step in with targeted interventions to support farmers, warning that without timely action, the combined effect of rising costs and global disruptions could significantly erode incomes across the sector.
