A significant transformation is looming in Kenya’s tea sector, as growers in Murang’a County propose a raft of changes aimed at improving the industry’s efficiency and profitability.
In a draft proposal submitted by ten tea factories and ratified by 60 directors, the management agent fee is set to be reduced to 1.5 per cent of the teas sold, with a cap of Sh10 million annually.
This marks a considerable drop from the previous fee of 2.5 per cent, as the industry seeks to increase returns to the growers, who are currently paid Sh21 per kilogramme of green leaf.
The draft proposal, which was compiled with input from tea growers collected by a consultant firm, suggests that the factories’ management should facilitate the agent’s takeover of the functions assigned to them.
The proposed changes are expected to bring about much-needed reforms in Kenya’s tea sector, which has been grappling with several challenges, including low prices and declining productivity.
The move is likely to improve the sector’s competitiveness and enhance its profitability.
While the proposed changes are still subject to review and approval, stakeholders are optimistic that they will be adopted, given the pressing need for reform in the industry.
The Kenyan tea sector is a significant source of revenue for the country, and any changes aimed at improving its performance will undoubtedly have a far-reaching impact.
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Joseph Omoniyi
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