KENYA – Kenya has launched a collection of transformative reforms aimed toward revitalizing the tea sector by enhancing transparency, bettering high quality, and selling fair-trade practices.
The reforms, introduced by Agriculture Principal Secretary Paul Ronoh, emphasize the federal government’s dedication to supporting tea farmers and making certain the sector’s long-term sustainability.
One of many key adjustments is the elimination of the reserve worth that was set in 2021 to curb losses from low market costs.
Whereas the reserve worth was supposed to guard farmers, it had the unintended consequence of driving merchants away from Kenya Tea Growth Company (KTDA) teas, resulting in a stockpile of 100 million kilograms of unsold tea on the public sale.
By eliminating the reserve worth, the federal government goals to encourage free commerce and restore competitiveness available in the market.
As well as, Ronoh introduced that each one KTDA factories will now be required to implement service-level agreements to make sure that farmers obtain high-quality providers.
Factories will even have the liberty to conduct direct gross sales, a transfer anticipated to spice up profitability and increase market entry for tea farmers.
To additional strengthen the sector, the Tea Board of Kenya has been tasked with auditing all KTDA-managed factories. This audit will assist determine operational challenges and allow the federal government to offer focused help.
The federal government will even undertake the costing of important KTDA gear to assist knowledgeable decision-making and forestall farmer exploitation.
Addressing issues about theft and high quality management, Ronoh revealed that each one manufacturing unit tea weighing machines will endure common calibration.
Each KTDA and personal tea factories might be required to satisfy established high quality requirements, and personal factories should adjust to registration necessities.
The reforms come at a time when Kenya’s tea exports have elevated by 4.2 % within the first half of 2024, reaching KES 86.1 billion (US$668 million).
Nevertheless, exports to United Arab Emirates (UAE), one of many main consumers of Kenyan tea, noticed a 34.6 % drop in gross sales, amounting to KES 4.5 billion (US$35.62 million).
Equally, tea exports to Afghanistan and Iran decreased by 76.8 % and 30 %, reaching KES 1.8 billion (US$14.14 million) and KES 3 billion (US$23.35 million), respectively.
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