More than 8,000 employees at Eastern Produce Kenya (EPK) are set to receive a cumulative 14 per cent wage increase under a new Collective Bargaining Agreement (CBA).
The move raising labour costs for one of Kenya’s major tea producers as the industry continues to navigate a difficult operating environment.
The agreement signed with the Kenya Plantation and Agricultural Workers Union (KPAWU) provides for a seven per cent general wage increase in 2026, backdated to January, followed by another seven per cent adjustment next year.
The deal increasing workers’ earnings at a time when tea producers are grappling with production costs, market conditions and pressure to maintain competitiveness in international markets.
The agreement covers more than 8,000 workers employed by the tea producer and comes against a backdrop of continuing debate over wages and working conditions in Kenya’s agricultural sector, where labour remains a major component of production costs.
EPK Company Director Leah Kibii Chirchir said the wage review was part of the company’s broader approach to employee welfare, arguing that workers were central to maintaining production and the quality of Kenyan tea destined for global markets.
“Our employees are at the heart of our business. Every day, through their dedication and hard work, they contribute to EPK’s success and the quality of the tea we produce,” Chirchir said.
She said the company would continue working with stakeholders to implement the revised wage requirements while maintaining sustainable operations and production.
The agreement also highlights the balancing act facing tea companies as they seek to improve employee earnings without undermining their ability to compete in a market exposed to volatile commodity prices and rising operating expenses.
KPAWU Secretary General Francis Atwoli acknowledged the difficult business environment facing tea growers and agricultural companies but singled out EPK for what he described as compliance with industrial relations requirements.
“At KPAWU, we recognise the role large tea growers such as EPK are playing in national development, especially in the employment sector,” Atwoli said.
The wage deal will increase the financial obligations of the company over the two-year period, although the actual impact on EPK’s total wage bill will depend on the existing pay structure and the number of employees covered by the agreement.
For workers, however, the first seven per cent increase will have a direct impact on earnings for the period beginning January 2026 because of the backdating provision.
The agreement comes as employers across the agricultural sector face pressure to balance worker welfare with the need to control costs and remain competitive.
Tea producers are particularly exposed to changes in international prices because revenues are largely determined by global market conditions, while many production expenses—including labour, energy, fertiliser, transport and processing—are incurred locally.
The EPK agreement therefore provides a fresh test of how agricultural employers can accommodate higher labour costs while protecting margins and sustaining investment in production.
The company said it remains committed to working with KPAWU and other stakeholders to implement the revised terms while maintaining its focus on production, sustainability and employee welfare.
