Tea leaf hawking hurting factories, KTDA chairman warns

Kenya Tea Development Agency (KTDA), Mr Chege Kirundi with Agriculture Cabinet Secretary Mr Magahi Kagwe. PHOTO/KTDA.

By DAVID ROP

newshub@eyewitness.africa

Tea leaf hawking is a significant issue facing the tea sector in the country, the chairman of the Kenya Tea Development Agency (KTDA), Mr Chege Kirundi, has said.

Mr Kirundi, who was speaking during a tea stakeholders’ forum chaired by Agriculture Cabinet Secretary Mr Magahi Kagwe, explained that tea hawking was particularly prevalent in the western region and required urgent attention.

“We have invested heavily in setting up tea factories; unfortunately, some of these factories are operating below capacity because we cannot source enough produce due to tea hawking. This has posed a serious challenge to our tea factories in the western region,” he said. 

Mr Kirundi stressed the need for sharing data on key aspects of the tea sector, particularly so that farmers are informed about the data driving the issue of tea hawking in the country.

He called for the sharing of information on tea producers, including their details, and added that governance should include full disclosure of beneficial shareholders.

“We request full disclosure in terms of governance and the introduction of new ethical management practices in trade, which will help us understand how to compete and develop competitive strategies for moving forward.”

The KTDA chairman identified taxation as another significant challenge facing the tea industry and urged Mr Kagwe to consider suspending some taxes or abolishing them altogether, as they were damaging the sector. 

Kenya Tea Development Agency (KTDA) group CEO and managing director, Mr Wilson Muthaura, speaking at the tea stakeholders forum in Mombasa. PHOTO/KTDA.

“We want to reiterate that the government should review the issue of taxation in the tea sector, as it is negatively affecting the industry,” he said.

Mr Kirundi noted that tea marketing was a critical issue for KTDA, and more efforts would be dedicated to marketing initiatives. He also highlighted production costs as another challenge in the tea industry that required attention.

He added that KTDA had introduced new initiatives refocusing on the tea farmer, as the agency’s priority is to ensure that tea farmers receive fair value for their produce.

Mr Kirundi noted that many of the challenges facing the tea industry would be addressed by a report launched by Mr Kagwe, which provides data to spur development in the tea sector. 

“On behalf of tea growers, I expect that you disclose all the players KTDA is competing with and those we collaborate with. In terms of the East African Tea Trade Association (EATTA), let us have full disclosure of its members,” he said.

He added that it was important for tea farmers to know who they are dealing with, including buyers, hawkers, and producers, as part of efforts to improve governance in the management of the tea sector.

Mr Kirundi concluded that although tea farmers have been recognised as key players in the tea industry, they receive the least of what is generated from the sector.

He emphasised that the focus should be on improving the welfare of tea farmers.