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{
    "id": 1618643,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1618643/?format=api",
    "text_counter": 70,
    "type": "speech",
    "speaker_name": "Tigania West, UDA",
    "speaker_title": "Hon. (Dr) John Mutunga Kanyuithia",
    "speaker": null,
    "content": " Hon. Speaker, pursuant to Standing Order No.44(2)(c), Hon. Dorice Donya requested for a Statement on 12th March 2025 regarding payment of annual bonuses to tea farmers. The Ministry of Agriculture and Livestock Development responded as follows to the issues in the raised Statement. The first issue was on the criteria used to determine the rates of annual bonuses paid to tea farmers across different regions and factories in Kenya. The rates of annual bonuses paid to tea farmers in different regions and factories in Kenya are determined by the factory boards. The rates are usually calculated at the end of each financial year after all the revenue and costs have been determined, financial statements prepared and audited by external auditors. The financial statements and proposed bonus rates are then presented to factory boards for approval in consultation with the factory stakeholders or shareholders, or growers. Tea bonus is dependent on the following factors: One, price realisation at the tea auction. Price is dependent on the quality of tea produced by each factory, which is determined by the quality of tea leaves, post-harvest handling, and manufacturing practices at the factory. The price is also influenced by the historical tea buyers’ perceptions regarding quality consistency in a specific tea factory. Other factors include the prevailing demand and political situation in the markets, as well as the effects of global economic shocks, and thus the average price varies from one factory to another. Two, the cost of production. This varies from factory to factory depending on the various cost items within the factory, like transportation costs to Mombasa, labour and administrative costs, and energy. Factories with efficient machinery and operations have lower production costs and higher net income, and vice versa. The second issue was on the reasons behind the significant variation in bonus payments to tea farmers in the country. The response is such that the variation in bonus payment to tea farmers by different factories in the country is determined by the price realised at the tea auction and the cost of production. Details of bonuses paid to farmers are contained in the response that was shared by Hon. Donya under Table two. I think Hon. Donya has it. The average total The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}