By Nyakundi Bw’Otwere
Tea stakeholders have voiced their concerns over key provisions in the Tea (Amendment) Bill, 2023, as they seek better market access and fairer pricing.
During a stakeholder engagement with the National Assembly Committee on Agriculture and Livestock, industry representatives presented their submissions on the proposed amendments to the Tea Act, which aim to streamline direct tea sales and improve the payment structure for farmers.
The meeting, chaired by Committee Vice-Chairperson Brighton Yegon—also the Member of Parliament for Konoin—provided a platform for key players to express their reservations about certain provisions.
Concerns from Kenya Tea Development Agency (KTDA)KTDA National Chairperson Chege Kirundi criticized Section 22(1) of the Bill, which proposes capping the number of board directors at five.
He argued that this provision undermines the governance framework by reducing representation for tea farmers.”We seek the deletion of Section 22(1) of the proposed Bill.
The current Act allows for up to nine directors—six elected, with three positions reserved for gender representation and governance compliance.
KTDA opposed Section 36(8), which empowers the Cabinet Secretary, in consultation with county governments, to regulate auction sales and establish auction centers in tea-growing counties.
The agency expressed concerns that multiple auction centers could fragment the market, leading to pricing disparities that might weaken Kenya’s competitive edge globally.
Yegon countered KTDA’s position, questioning its resistance to auction decentralization.
He cited challenges faced by tea farmers in the West Rift, whose produce fetches low prices in the Mombasa Tea Auction—often below production cost.
“Why oppose the establishment of new auction centers when farmers in this region struggle with poor prices?” Yegon asked.
Kenya Tea Growers’ Association (KTGA) CEO Linda Oluoch raised concerns over Clause 13, which amends Section 53 of the Tea Levy to exempt specialty and value-added tea packed in containers of ten kilograms or less.
She argued that restricting tax exemption to this packaging size neglects essential incentives for all types of value-added teas, including instant teas and uniquely processed varieties.
“We propose deleting the phrase ‘packed into packets or containers holding not more than ten kilograms’ in sub-clause (2A) to ensure all value-added teas receive equal exemption benefits, thereby promoting investment in value addition,” Oluoch said.
Future Implications of Bill
Introduced by Bomet Senator Hillary Sigei, the Bill seeks to reform Kenya’s tea sector by improving transparency, enhancing farmer earnings, and strengthening the industry’s global competitiveness.
The success of these legislative changes will depend on effective implementation and stakeholder consensus.
Other organizations that presented submissions included the East Africa Tea Trade Association (EATTA), Kenya Tea Brokers Association (KTBA), Tea Board Kenya (TBK), and the Tea Research Institute under the Kenya Agricultural and Livestock Research Organization (KALRO).
