This archive report was first published on 22 May 2020.
On May 21, 2020, Agriculture Secretary Peter Munya released final regulations aimed at boosting transparency in the tea sector and giving farmers good returns.
The regulations, which have since been sent to the Attorney-General's office for gazettement, are expected to weaken the control of Kenya Tea Development Agency (KTDA) over 69 factories.
Under the new regulations, KTDA would charge the factories no more than 1.5 percent as management fee, a significant reduction from the current 2.5 percent.
Mr. Munya stated that the regulations would improve productivity and efficiency in the tea value chain, create transparency and accountability, and generate more earnings to the country and farmers from tea exports.
The rules have also dealt a blow to KTDA's Chai Trading, its subsidiary, which is registered as a direct export agent. Mr. Munya has outlawed direct sale of tea, saying Kenya will exclusively sell its produce through the auction in Mombasa.
According to Mr. Munya, the regulations would incorporate recommendations received from stakeholders, including voting for directors under the one-man-one-vote principle.
