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Kenya’s tea task-force recommends review of brokerage fees on producers

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By Steve Umidha

The task-force comprising industry leaders to review the Tea Act and the Role of Tea Board that was set up last year by the government yesterday handed over its report to the Agriculture cabinet secretary, Willy Bett.

The Kagiri Kamatu led-team made 13 recommendations in its report and approved that the brokerage fees paid by the producers be reviewed from the current 0.75 per cent to 0.5per cent by the respective parties, in line with the other leading tea auctions.

Speaking Monday while presenting the report to the CS, the chairman of the Tea taskforce Kagiri Kamatu said that the recommendations were aimed at increasing farmers’ incomes in the future which will only be achieved once the report’s findings are implemented.

The Report recommends the strengthening of the Tea Directorate and Tea Research Institute in view of the strategic position of Kenya tea in the global economy, in the medium term amend the law to revert back to the Tea Board of Kenya and Tea Research Foundation of Kenya.

The Report further recommended that the Lot charge of USD 3.30 be discontinued. This will result in cost savings to tea farmers amounting to Shs.62 million per year while.

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To address concerns of the stakeholders the report also recommended that the Tea ad valorem Levy be reduced from 1 percent to 0.75percent and be renamed the Tea Levy

Tea Directorate in the Agriculture, Fisheries and Food Authority (AFFA) has been tasked with the role to carry out the implementation process of the report’s findings after the Taskforce Report recommended for the establishment of an implementation framework to oversee the implementation of the various proposals, interventions, and recommendations made.

 

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