In response to the growing surplus of unsold tea, the government has implemented decisive measures to address the situation.
These actions specifically target smallholder tea factories under the management of the Kenya Tea Development Agency (KTDA).
This comes after a meeting on August 1, 2024 at the Tea Trade Centre, which included Agriculture Principal Secretary (PS) Paul Ronoh, KTDA officials, the East African Tea Trade Association (EATTA), tea buyers, and brokers.
Contrary to recent reports on social media alleging that KTDA is holding over 400 million kilograms of unsold tea, it has been clarified that the actual figure is significantly lower, at 100 million kilograms.
“KTDA is only holding 100 million kilograms of unsold teas from smallholder tea factories,” read part of a statement by PS Ronoh.
READ ALSO:
Link between TVETs and agriculture in Embu still low, experts say
The government urged all tea traders to avoid spreading unverified information, as it causes unnecessary anxiety in the market.
The government and stakeholders reached key resolutions during the meeting.
The government will revise the Tea Act 2020 to permit Direct Sales Overseas (DSOs) by all tea producers, including those managed by KTDA. This initiative is intended to open up new markets and simplify the sales process.
The reserve price mechanism, which has been a point of contention, will undergo a review to align with current market dynamics.
The government also stated that all tea producers must adhere to a minimum tea quality standard of 65 percent to combat the declining quality of Kenyan tea.
By Frank Mugwe
Get More Stories from our Website Sacco Review Newspaper
For Comments and clarification, write to: saccoreview@shrendpublishers.co.ke
Kindly follow us via our social media pages on Facebook Sacco Review Newspaper for timely updates.
