KENYA – Kenya has introduced a series of transformative reforms aimed at revitalizing the tea sector by enhancing transparency, improving quality, and promoting fair-trade practices.
The reforms, announced by Agriculture Principal Secretary Paul Ronoh, emphasize the government’s commitment to supporting tea farmers and ensuring the sector’s long-term sustainability.
One of the key changes is the removal of the reserve price that was set in 2021 to curb losses from low market prices.
While the reserve price was intended to protect farmers, it had the unintended consequence of driving traders away from Kenya Tea Development Agency (KTDA) teas, leading to a stockpile of 100 million kilograms of unsold tea at the auction.
By eliminating the reserve price, the government aims to encourage free trade and restore competitiveness in the market.
In addition, Ronoh announced that all KTDA factories will now be required to implement service-level agreements to ensure that farmers receive high-quality services.
Factories will also have the freedom to conduct direct sales, a move expected to boost profitability and expand market access for tea farmers.
To further strengthen the sector, the Tea Board of Kenya has been tasked with auditing all KTDA-managed factories. This audit will help identify operational challenges and enable the government to provide targeted assistance.
The government will also undertake the costing of critical KTDA equipment to support informed decision-making and prevent farmer exploitation.
Addressing concerns about theft and quality control, Ronoh revealed that all factory tea weighing machines will undergo regular calibration.
Both KTDA and private tea factories will be required to meet established quality standards, and private factories must comply with registration requirements.
The reforms come at a time when Kenya’s tea exports have increased by 4.2 percent in the first half of 2024, reaching KES 86.1 billion (US$668 million).
However, exports to United Arab Emirates (UAE), one of the major buyers of Kenyan tea, saw a 34.6 percent drop in sales, amounting to KES 4.5 billion (US$35.62 million).
Similarly, tea exports to Afghanistan and Iran decreased by 76.8 percent and 30 percent, reaching KES 1.8 billion (US$14.14 million) and KES 3 billion (US$23.35 million), respectively.
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