Reforms in Kenya’s Tea and Coffee Sectors Yield Positive Results, Says DP Gachagua

Deputy President Rigathi Gachagua recently highlighted the positive impact of ongoing reforms in Kenya’s tea and coffee subsectors, emphasizing that small-scale farmers are beginning to see increased earnings. These reforms, driven by government initiatives, have not only improved financial returns for farmers but have also enhanced transparency and accountability within the industry.

In a recent interview, Gachagua noted that more than 800,000 small-scale farmers supplying green leaf tea to Kenya Tea Development Agency (KTDA)-managed factories are now experiencing improved bonus payouts. “Looking at the figures, the bonus payment in most KTDA factories has improved and is notably higher in several factories, particularly in the East of the Rift Valley,” he stated. This increase in earnings is attributed to a series of reforms that have empowered farmers to raise concerns regarding operational and overhead costs associated with their trading entities.

The Deputy President addressed the demonstrations occurring in the West of the Rift Valley, explaining that these actions are part of the ongoing education efforts among small-scale farmers regarding their rights and operational challenges. He pointed out that in some areas, the cost of production has surged due to excessive allowances and travel expenses incurred by tea directors, which ultimately eat into the farmers’ profits. Gachagua stressed that the reforms have made farmers more aware of these issues, enabling them to advocate for better practices.

Furthermore, he expressed optimism regarding the full implementation of the Tea Act, following the withdrawal of several court cases that had previously hindered progress. “I held a tea conference in Kericho and brought together all stakeholders. We faced significant challenges in implementing the Tea Act due to ongoing litigation, but I successfully negotiated for these cases to be dropped. As a result, the Act will now be fully implemented, allowing farmers to reap the benefits,” he explained.

The Deputy President also addressed the challenges faced at the Mombasa tea auction, particularly with tea from the Western Region. He noted that an excessively high reserved price had been set, preventing stocks from moving. By adjusting the reserved price downwards, Gachagua facilitated the movement of tea stocks, enhancing market activity.

Turning to the coffee sector, Gachagua discussed the Government’s legal amendment proposals contained in the Coffee Bill 2023 and the Cooperatives Bill 2023, currently pending before Parliament. These bills are expected to catalyze significant changes in the coffee industry, based on feedback gathered from farmers and stakeholders during the Meru Coffee Conference in 2023.

Gachagua reported that coffee farmers have seen improved earnings this year, with many receiving an average of Ksh 100 per kilogram of coffee delivered to their factories. He emphasized the importance of the proposed Coffee Bill, which includes recommendations for reestablishing the Coffee Board of Kenya to handle marketing directly for farmers, as opposed to private entrepreneurs.

Additionally, the revival of the Coffee Research Foundation is set to focus on developing disease-tolerant crop varieties, further enhancing the resilience of the coffee sector.

Under Gachagua’s leadership, significant progress has been made in establishing a Direct Sales Settlement system, allowing farmers to sell their coffee directly and receive proceeds swiftly through the recently reopened Nairobi Coffee Exchange. “With coffee auctions taking place every week, we are on track to ensure that once the Bill is approved by Parliament, all the reforms we have initiated will come to fruition, significantly benefiting our farmers,” he remarked.

The ongoing reforms in Kenya’s tea and coffee sectors indicate a promising trajectory towards improved earnings and sustainability for farmers, marking a pivotal shift in the landscape of these vital agricultural industries. With continued support and implementation of these reforms, the future looks brighter for small-scale farmers across the nation.