This archive report was first published on 21 May 2020.
On May 21, 2020, Kenya's Agriculture Cabinet Secretary Peter Munya announced the finalization of new tea regulations aimed at improving the tea sector.
The regulations, which have been in the making since President Uhuru's directives on January 14, 2020, are expected to benefit tea farmers by reducing unnecessary cost burdens and improving productivity and efficiency in the tea value chain.
Speaking during the announcement of the final tea regulations at Kilimo House, Munya said the regulations will re-balance power and influence wielded by value chain players, ending the capture of cartels that has been subjecting smallholder farmers to endless suffering.
Key highlights of the regulations include the sale of tea by private treaty being outlawed, with any tea not sold at the auction being relisted for sale during the subsequent auction.
Buyers at the auction will be required to submit a performance bond equivalent to 10 percent of the estimated value of the tea or teas they intend to buy.
The regulations have also reduced the brokerage fee from 1.50 percent to 0.75 percent, with farmers paying 0.2 percent and buyers paying 0.55 percent respectively.
Additionally, the regulations have reduced the number of directors for Smallholder tea factory limited companies to three and the directors' servicing period to two terms of three years each.
The regulations have been forwarded to the Attorney General's office for legal scrubbing and will be published by the minister and forwarded to parliament for discussion and final approval.
Munya further announced that he will appoint a taskforce to spearhead the implementation of the regulations within the next one week.
