Smallholder tea farming is an important source of rural livelihoods in Kenya, while the Kenya Tea Development Agency (KTDA) plays a central role in organizing production, marketing, and farmer payments. This paper reviews literature on KTDA remuneration practices and examines their influence on the economic well-being of smallholder tea farmers in Kericho County, Kenya. Guided by New Institutional Economics as the anchor theory and supported by Institutional Theory and Resource Dependence Theory, the review synthesizes evidence on monthly initial payments, annual final payments, pricing conditions, bonus payments, payment transparency, and household economic outcomes. A qualitative desktop literature review was conducted using scholarly publications, institutional reports, government documents, and policy literature. The evidence indicates that the timing, predictability, transparency, and value of farmer payments have important implications for household liquidity, income stability, financial planning, savings, and investment. Recent Kenyan evidence also indicates continuing concern about regional differences in tea prices and bonuses, while Kericho-specific research demonstrates the continuing importance of tea income and access to financial resources for household economic outcomes. The review identifies a significant empirical gap concerning the relationship between KTDA remuneration practices and multidimensional economic well-being indicators among smallholder tea farmers in Kericho County and highlights the need for further empirical investigation.