The Kenya Tea Development Agency (KTDA) and the Kenya Tea Growers Association (KTGA) appeared before the Agriculture and Livestock Committee to provide more information as the inquiry into tea pricing in Kenya continues.
The Kenya Tea Growers Association (KTGA), led by the CEO, Lindah Oluoch, raised alarm over sustained low tea prices and mounting unsold stocks.
There is an ongoing investigation by Members of Parliament to fact-check the situations of low tea pricing in some areas in the country, where the entity says that the sector is facing its most difficult period in decades due to policy disruptions, rising production costs, and shrinking global markets.
Oluoch told MPs that large-scale producers who account for 40 percent of Kenya’s total tea output have been unable to secure competitive prices in the Mombasa Tea Auction, leading to a historic accumulation of unsold tea.
“For auction-sold teas, tea pricing is determined through samples provided to a broker by the producer for teas to be presented at a scheduled auction,’’ Oluoch told MPs.
She added, “The buyer does the tea tasting, based on which they determine the price of their bid for the teas when the teas are presented at the auction.”
The association proposed a moratorium on increased regulatory fees, harmonization of county levies, and alignment of regulatory charges with actual services provided, urging the government to ensure factory licensing is guided by data on optimal national production volumes.
As the universe is digitally evolving, KTGA urged lawmakers to fully support a digital transformation of the tea value chain, including a unified digital registry, automation of returns, and the real-time publication of industry data.
‘’Honourable Members, therefore, a well-designed digital ecosystem will not only enhance operational transparency and accountability but also unlock new revenue opportunities, improve the sector’s competitiveness, and position the tea industry to capture higher earnings without imposing additional regulatory burdens on producers,” Oluoch advised.
'' Through strategic investments, enhanced marketing, and targeted promotion, both locally and internationally, the tea industry is prepared to maintain its pivotal role as a driver of economic resilience, employment, and sustainable development in Kenya,’’ part of the statement was submitted before the MPs read.
