The government and the Kenya Tea Development Agency (KTDA) have announced a series of strategic interventions. These measures were agreed upon during a consultative meeting held in Kisumu on Friday, which brought together key stakeholders, including factory directors from the West Rift, the Tea Board of Kenya, the East African Tea Trade Association (EATA), tea buyers, and KTDA management.
As of July last year, an estimated 100 million kilos of tea remained unsold at KTDA warehouses in Mombasa. To address this, Agriculture Principal Secretary Paul Ronoh directed all tea factories to submit data on their unsold stock to the Tea Board of Kenya within a week. This move is expected to facilitate swift decision-making and implementation of corrective actions to enhance tea sales.
A major resolution from the meeting was the enforcement of a ban on selling tea below the cost of production. Factory directors have been given full responsibility for managing sales at their respective facilities to ensure profitability. They were also urged to engage with their brokers immediately to establish more competitive pricing for Kenyan tea.
To further enhance the marketability of tea, the government committed to reviewing levies and taxes on tea to support value addition industries. Additionally, financial assistance will be extended to older factories to modernize their operations and improve efficiency. Another significant aspect of the discussions was the exploration of new international markets for Kenyan tea, with buyers expressing support for improved pricing structures that benefit farmers.
The meeting also included deliberations by the special Taskforce formed to investigate the underlying causes of the accumulation of unsold tea stocks. Led by chairperson Nicholas Munyi, the 15-member team was constituted by former Agriculture Cabinet Secretary Andrew Karanja. The Taskforce is mandated to propose short, medium, and long-term solutions to address the issue.
In addition to investigating the reasons behind the stockpile of unsold tea, the Taskforce will probe delays in farmer payments, the warehousing conditions and charges, and the quality and shelf life of stored teas. Furthermore, the team will analyze the significant price variations between teas from the East and West Rift regions and provide recommendations to bridge the gap.
Stakeholder meetings and public forums across the country are scheduled as part of the Taskforce’s mandate to ensure comprehensive sector-wide engagement and lasting solutions. These initiatives mark a crucial step toward stabilizing tea prices and securing better earnings for Kenyan tea farmers.
