Government move to amend tea Act 2020 to allow direct overseas sales

Agriculture Principal Secretary Kipronoh Ronoh said the government has plans to amend the tea Act 2020 to allow for Direct Sales Overseas [DSOs] at the floor of the August house.

He said the amendment of tea Act 2020 will enable tea producers, including factories managed by Kenya Tea Development Agency [KTDA] to sell the products directly overseas.

“Almost 30 per cent of the Gross Domestic Product (GDP) of the country’s economy comes indirectly from the sector,” he pointed out.

Ronoh said the tea sector is a crucial economic factor of the country adding that the government is determined to bring order to the sector.

He was addressing journalists at end of a joint meeting between tea brokers, buyers and regulators held at East Africa Tea Traders Association [EATTA] tea auction centre in Mombasa county.

The PS told the media the government will ensure tea farmers get value for their money.

Ronoh who was flanked by the EATTA chairperson Arthur Sewe and the Chief Executive Officer [CEO] George Omuga added that the forum with tea stakeholders successfully made 12 resolutions at end of the one-day meeting.

He said they have resolved to ensure all unsold tea both at the stock and the factory warehouses will be sold by end of next month.

“We have established that close to 400 million kilograms are unsold teas from small holders and factories,” he pointed out.

The Agriculture Principal Secretary announced the government has waived the cost of warehouse charges and assured the tea buyers they will not part with the warehouses storage charges.

Ronoh said they have resolved the tea which is carried forward at end of the financial year is minimized to international standards practice to less than 30 million kilos of unsold tea.

He clarified the unsold tea will be brought forward from end of last financial year.

“The move has emerged from challenges facing the sale of tea from smallholder tea factories managed by KTDA,” he said.

The PS said the agreement at end of the meeting is contrary to reports existing on social media over unsold tea at warehouses.