This archive report was first published on 7 May 2020.
On May 7, 2020, the Tea Industry (2020) Rules proposed reforms for the tea sector, which have been welcomed by smallholder tea farmers.
The Tea Farmers Action Group, a lobby of Mt Kenya tea farmers, has expressed support for changes in tea factory governance, relations with management agents, and the running of the Mombasa Tea Auction.
The group's leader, Ndegwa Wanyaga, a former Chinga Tea Factory director, said, "These are the key reforms that we are interested in and we believe will change fortunes of the farmer."
The group also supported the abolishing of direct overseas sales (DSO) and the remitting of sales proceeds directly to the factory within 14 days.
However, the Kenya Tea Development Authority (KTDA) has raised concerns about the impact of the reforms on international tea trade.
KTDA claimed that outlawing DSO will shift buyers to other African producers and that reducing its 2.5 per cent management fee on factories will erode the cocktail of services it offers and possibly rob farmers of economies of scale.
