CS Lee Kinyanjui Summoned By Senate

The Senate Committee on Trade, Industrialization, and Tourism, chaired by Senator Issa Boy Juma, has summoned Investment, Trade, and Industry Cabinet Secretary Lee Kinyanjui for failing to attend a scheduled committee meeting on Wednesday.

The CS had instead delegated the session to Industry Permanent Secretary Dr. Juma Mukhwana, who also failed to appear.

“The committee has, on numerous occasions, invited the CS to appear before this committee, but the invitations have not been honoured. The committee has resolved to summon the CS to appear before the committee on April 10, 2025,” said Senator Issa Boy.

The committee was in Mombasa to assess challenges affecting Kenya’s tea industry and visited the Mombasa Tea Auction, where they engaged stakeholders on pricing, taxation, land tenure, market access, and government policies.

During discussions, Senator Issa Boy raised concerns over price disparities in the sector, questioning why tea from similar altitudes and production methods fetched different prices.

Senator Jackson Mandago called for transparency in the auction process to ensure farmers receive fair prices, while Senator Okiya Omtatah criticized the heavy taxation burden, arguing that high levies and operational costs were making it difficult for smallholder farmers to compete globally.

Senator Esther Okenyuri sought clarification on the impact of Sudan’s economic challenges and international sanctions on Kenya’s tea exports.

She questioned the volume of tea previously exported to Sudan and whether alternative markets were being explored to cushion farmers from losses.

Industry stakeholders pointed to several challenges, including the high cost of packaging materials, which accounts for 75–80% of the price of a packet of tea bags.

They also highlighted the impact of increased import duties on paper, a Ksh 3 billion VAT burden, and government-imposed minimum price regulations, all of which have contributed to reduced competitiveness and capital flight.

Additionally, stakeholders noted that consumer habits had shifted since COVID-19, with many buyers opting for online shopping.

They called for policies to support local branding and export competitiveness, particularly in markets like India and the UK.

The committee also visited the Kenya Ports Authority (KPA) and the Dongo Kundu Special Economic Zone as part of their assessment.

At the conclusion of the discussions, the senators committed to compiling a report with recommendations on fair pricing policies, tax reforms, land tenure solutions, export diversification, and increased value addition in the tea sector.