The proposed Tea (Amendment) Bill, 2023 will facilitate the direct sale of tea, enabling factories and farmers to negotiate with buyers offering the highest prices, Agriculture Principal Secretary Paul Ronoh has said.
During a visit to Tirgaga and Motigo factories under the management of the Kenya Tea Development Agency, Ronoh explained that the Bill aims to amend the existing Tea Act to address longstanding challenges faced by farmers under the current auction system.
“For a long time, Kenyan tea has been sold through the Mombasa Tea Auction. While the auction has provided a market platform, it has also limited farmers, especially when there are direct buyers willing to pay better prices,” he said.
The Principal Secretary elaborated that once enacted, the Bill will allow tea factories to package, brand, and sell their tea directly to local and international clients through negotiated agreements.
He highlighted that the reform is expected to boost competition, enhance price discovery, and increase farmers’ earnings.
Ronoh also stressed that under the current framework, proceeds from tea sales via the auction are remitted directly to factories to ensure farmers are paid promptly before operational expenses are deducted.
Addressing concerns over alleged irregularities in foreign exchange handling by factories, he warned that any scheme involving proceeds being converted into foreign currency with exchange rates determined outside legal channels is illegal and will not be tolerated.
“The government is committed to transparency and accountability in the tea sector. Farmers must receive their full dues without manipulation,” he said. On quality control, the PS revealed that farmers have petitioned for the introduction of scientific tea tasting methods to replace the traditional manual system.
He announced that his ministry, in collaboration with the Tea Board of Kenya, plans to commission a scientific tea tasting system in May to ensure objectivity and fairness in grading.
Ronoh reiterated that the Kenya Kwanza administration remains dedicated to reforming the tea subsector to improve farmers’ livelihoods and strengthen Kenya’s position in the global tea market.
He further stated that the government is keen to address challenges facing tea farmers across the country to help them earn better from their activities. Tea, he noted, is Kenya’s main export crop, generating significant foreign exchange income, which underpins the push for sector reforms for the benefit of farmers.
The principal secretary added that the government would engage farmers and stakeholders through public participation to ensure awareness of the upcoming reforms.
