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Murang'a tea farmers fight proposed bill threatening profits and industry gains

A looming parliamentary vote pits Kenya's top tea-producing county against a bill that could drain millions from farmers. Will lawmakers listen? The proposed fee hikes and governance changes have ignited fierce resistance from Murang'a's tea sector leaders.

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1 min read
The image shows two women in yellow raincoats picking tea leaves from a tea plantation in Kenya....
The image shows two women in yellow raincoats picking tea leaves from a tea plantation in Kenya. They are both holding baskets in their hands and there is a cup and saucer on the ground in front of them. The background of the image is filled with lush green plants, rolling hills, and a bright blue sky with the sun shining down.

Murang'a tea farmers fight proposed bill threatening profits and industry gains

Over 80 tea directors in Murang'a County have warned that the proposals in the Tea Amendment Bill, 2023 could cause significant losses for farmers if not handled carefully. They also rejected the proposed reduction of directors from six to five, accusing the Senate of micromanaging the tea sector despite it being governed by a memorandum.

Murang'a has the highest number of factories, contributing 40 per cent of the country's tea production. It should lead the way, as if the situation is not addressed, farmers will face major losses," said Githinji.

The directors from the 10 factories under the Kenya Tea Development Agency (KTDA) met MPs from the county to deliberate on the potential effects of the proposed changes on the sector.

The consultation focused on collaborative approaches to strengthen the tea sector, with emphasis on farmers, factories, and the broader economy. Parliamentarians Joseph Munyoro (Kigumo), Chege Njuguna (Kandara), Edward Muriu (Gatanga), and Sabina Chege (Nominated) agreed to actively debate the key issues in parliament next week as representatives of the tea farmers.

Led by James Githinji, the directors stated that the amendment would undermine the progress made under the Tea Act 2020 and should be withdrawn before the bill reaches its third reading. They also highlighted that increasing the management fee from 1.5 per cent to 2 per cent of the sale would reduce the gains farmers make nationwide.

The Direct Settlement System (DSS) could jeopardise forex earnings of over Sh 2 billion annually, among other benefits.

Ngere Factory Chairman James Githinji emphasised that the gains achieved through the Tea Act 2020 must be safeguarded.

KTDA Management Service seeks to revert to charging the management fee at two per cent, which will affect the farmers' earnings," Githinji stated.

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