Bomet Governor Hillary Barchok's plans to sell tea direct to Iran have failed following adoption of the Tea Bill by the Senate.
The Bill passed unanimously on Monday bans direct sales, requires prompt payment of farmers and revives the Tea Board of Kenya to ensure proper management of the sector.
This mean the tea sales deal between Bomet county and the Iranian government is dead. The deal was in the final stages of negotiations.
At least 15 per cent of Kenyan tea is sold directly and global prices rely heavily on prices at auction.
The Bill requires tea brokers, buyers and auction organisers to pay proceeds from the sale of tea within 14 days.
Barchok said the new regulations are not aimed at benefiting small-scale tea farmers but rather a few individuals.
Many people welcomed the regulations and said they will solve the long-standing problem of delayed payment.
The governor defended direct sales, saying farmers would benefit since brokerage, transport and warehousing fees would be abolished.
Barchok said some individuals were out to turn tea into their own business and in the long run the Bill will lead to farmers being impoverished.
The governor had engaged factory directors to find an alternate way to manage tea. Most directors supported direct sales and the governor travelled to Iran for talks.
Iran is a leading international buyer of the Kenyan tea. Iranian diplomats said the deal would also help Kenya as Iran would be a conduit to neighbouring tea-drinking countries, such as Pakistan.
In backing the move, factory directors said direct sales help in fetching premiums that can be used in social corporate responsibility projects, instead of sales at the auction.
(Edited by V. Graham)
