More Changes Proposed To Tea Bill Allowing Direct Sales

The National Assembly is considering more changes to the Tea (Amendment) Bill, 2023, which seeks to revise the Tea Act to allow direct sales of tea, improve payment of tea proceeds, and address related matters.

On Tuesday, June 10, 2025, the National Assembly Committee on Agriculture and Livestock held a stakeholder engagement meeting chaired by Vice-Chairperson Brighton Yegon (Konoin MP). Several tea industry players presented their views on the Bill, which originated from the Senate.

The Kenya Tea Development Agency (KTDA), led by Chairperson Chege Kirundi, was the first to make its submission.

KTDA opposed a clause in the Bill—Section 22(1)—which proposes to limit the number of board members to five. Kirundi argued that the Tea Act already allows for up to nine directors, with six elected and three appointed to ensure fair representation, including gender balance.

“Reducing the number of directors may lead to underrepresentation of tea farmers across the factories,” Kirundi said.

KTDA also objected to another proposal—Section 36 of the principal Act—which empowers the Cabinet Secretary, in consultation with county governments, to create new tea auction centers in tea-growing regions.

Yegon questioned KTDA’s opposition, saying additional auction centers could help struggling farmers, especially those from the West Rift, where tea prices at the Mombasa Tea Auction are reportedly lower than production costs.

But KTDA argued that multiple auctions would fragment the market, lead to inconsistent pricing, and weaken Kenya’s global advantage, which a centralized pricing model at the Mombasa auction supports.

“Retain the Mombasa Tea Auction as the sole auction center,” Kirundi urged the committee.

Nominated MP Sabina Chege challenged KTDA’s resistance to limiting the number of directors, saying farmers have long complained about the financial burden of supporting nine directors.

“Why are you against this regulation? Are you considering the burden on farmers?” she asked.

Kirundi responded that the number of directors should remain flexible, based on a factory’s size, turnover, and shareholding structure.

The Kenya Tea Growers’ Association (KTGA), represented by CEO Linda Oluoch, objected to Clause 13 of the Bill, which exempts value-added or specialty teas from the tea levy only if they are packaged in containers of 10 kilograms or less.

Oluoch argued this packaging limit excludes other value-added teas, such as instant or special Kenyan teas, that may come in larger packs.

“We propose deleting the phrase ‘not more than ten kilograms’ to allow all value-added teas to benefit from the exemption,” she said.

Other industry stakeholders who made submissions included the East Africa Tea Trade Association (EATTA), the Kenya Tea Brokers Association (KTBA), the Tea Board of Kenya (TBK), and KALRO–Tea Research Institute. The committee is expected to review all submissions before making its final recommendations on the Bill.