This archive report was first published on 3 August 2020.
The Kenya Tea Development Agency (KTDA) is facing a significant financial blow following the implementation of new tea regulations on Monday.
The regulations, which will be in effect for the next seven months, propose a reduction in service payments to management agents from 2.5% to 1.5% of the net sales value of tea sold at auction.
Tea factories are set to benefit from the new regulations, as they will receive proceeds from tea auctions immediately. Additionally, brokers with direct or indirect commercial links with a tea factory are barred from offering brokerage services to the factory.
The move comes as a standoff between the KTDA and the government looms, following a recent High Court ruling that stopped the newly appointed committee on the implementation of tea reforms from carrying out its duties.
The Agriculture Cabinet Secretary has announced plans to appeal the ruling, which has been met with opposition from the KTDA.
