Reforms saved tea sector from imminent collapse- CS Munya

Agriculture Cabinet Secretary Peter Munya has said the reforms implemented in the tea sector have saved it from imminent collapse.

Munya  said cartels had a chokehold on the sector and would have drained all life from it were it not for the government’s intervention.

Unscrupulous dealers made enormous profits as farmers were left languishing in debts and poverty, Munya said.

Munya cited the Mombasa tea auction that he said was being controlled by cartels that colluded with Kenya Tea Development Authority officials to have tea sold directly to buyers.

In July last year, KTDA introduced a minimum reserve price of Sh268 per kilogramme of processed tea in a bid to cushion farmers from the dwindling tea prices. 

The reserve price, Munya said, has helped control tea prices as the market continues to align to the new prices.

Previously, there were concerns that tea prices were falling below the cost of production, occasioning huge losses to farmers.

This, Munya said, is despite the fact that tea prices in the international market were still high.

“One would wonder, then,why money paid to farmers continued to decline but that was because of the interference of cartels,” he said.

Munya who was addressing farmers at Kanyenya-ini tea factory on Tuesday said in the last five years, tea prices were on a gradual decline which has been reversed by the setting up of the minimum reserve price.

“Save for these reforms, many tea farmers would have abandoned the sector in the next few years and lead to its collapse,” he said.

By getting rid of the cartels, the reforms have ensured that farmers get more returns, Munya said, vowing to ensure the sector is fully streamlined.

Despite earning more, farmers are now paid before the fifth day of each month to avoid delays that were experienced previously which helps farmers to better plan for their money.

Through the newly established Tea Act, the government will be able to seek new markets for the commodity through the Kenya Tea Board.

“This year, the annual bonus will be paid before July 10 and farmers can expect more money than last year because the prices have been increasing,” Munya said.

The CS asked farmers to continue supporting the government in its bid to restructure the agricultural sector that has been ailing for decades.

He reiterated the need for farmers to elect leaders who will continue with the reforms and shun those who could reverse the gains made.

Munya also urged farmers to access subsidised fertiliser from National Cereals and Produce Board  stores to improve their production.

(Edited by Francis Wadegu)