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{
    "id": 1502984,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1502984/?format=api",
    "text_counter": 224,
    "type": "speech",
    "speaker_name": "Tigania West, UDA",
    "speaker_title": "Hon. (Dr) John Mutunga Kanyuithia",
    "speaker": null,
    "content": "The second issue in the determination of bonuses is the cost of production. The cost of production also varies from factory to factory, depending on various factors such as transportation, cost to Mombasa, labour and administration costs, and energy cost. Factories with efficient machinery and operations can realise lower costs of production. This means that a factory which realises a lower price and has a relatively higher cost of production will end up with lower net income and will, therefore, pay less bonus to farmers. The third issue is the process involved in bonus determination. Tea bonus is usually calculated at the end of each financial year, after all revenue and costs have been determined and financial statements prepared and audited by an external auditor. The financial statements are then presented to factory boards for approval, together with the proposed rate of bonus, subsequent to which the directors disseminate the same to factory shareholders or growers. The second issue in the request is the reasons behind the significant variations in bonus payments to tea farmers in the country. The disparities in bonus payments between different factories in the country are determined by the price realised at the tea auction and the cost of production. A summary of the bonus paid in the year 2023/2024 compared to year 2022/2023 is shown in the table provided. I will just give the average of the summaries. In the East Block, the first four factories, which are basically in Kiambu, paid an average of Ksh73 per kilogramme in the year 2023/2024. The previous year, the factories paid Ksh62.70 per kilogramme. Factories in Murang’a paid an average of Ksh81.5 this year and Ksh64.3 last year. Factories in Nyeri paid an average of Ksh74.40 this year and Ksh64.30 last year. Factories in Kirinyaga paid an average of Ksh77.10 this year and Ksh65.50 last year. Factories in Embu paid Ksh84.20 this year and Ksh64.20 last year. Factories in Meru paid Ksh67 last year and"
}