• In June last year, the proposed law, sponsored by Kericho senator Aaron Cheruiyot, was passed by the Senate and sent to the National Assembly for concurrence.
• It establishes a tea fund to stabilise market prices.
Image: FILE
Senators on Monday endorsed amendments to the Tea Bill, 2018, and approved the proposed law that seeks to reform the sector.
The lawmakers termed the Bill a game-changer that will revolutionise the sector and revive farmers' fortunes.
“This Bill is going to be an early Christmas [gift] for our tea farmers,” Vihiga Senator George Khaniri said.
Khaniri, whose Vihiga is a tea-growing county, added, “For years, cartels in the sector have flourished at the expense of the farmer. We cannot afford to delay this Bill any further.”
In June last year, the Bill, sponsored by Kericho Senator Aaron Cheruiyot, was passed by the Senate and sent to the National Assembly for concurrence.
The National Assembly sent it back early this month with amendments that aim to benefit farmers who have for years blamed poor management for their dwindling returns.
The proposed law reintroduces the Kenya Tea Board and the Tea Research Foundation and provides new regulations to govern the sector.
Among other key reforms, it ensures auction organisers, buyers and brokers pay formers up to 50 per cent within 14 days from the proceeds of sales.
This makes it hard for the Kenya Tea Development Agency, which has been accused of holding onto farmers’ money, from doing so.
It also reduces the number of taxes levied on the farmers, makes it mandatory for all tea to be auctioned in Mombasa and ensures that KTDA no longer has access to the money since it will now be controlled at the factory level. It further establishes a tea fund to stabilise market prices.
Debating the amendments by the National Assembly, senators said the Bill cures many problems that farmers currently endure.
"Reforms in the tea sector could not have come at a better time. It has come a time when tea farmers are crying for reforms... today, there are many farmers who don't know who their directors in their factories are or even how they were elected,” Agriculture committee chair Njeru Ndwiga said.
"This Bill requires that within eight years, factory managers will start the process of value addition.”
Kipchumba Murkomen (Elgeyo Marakwet) said the Bill is meant for "hustler tea growers".
“It is for the small man and woman in these far-flung areas,” he said.
Minority leader James Orengo said, “The primary person to support is the farmer. We have several players in the tea industry, but the primary person to protect is the farmer... I pray of you, think of the farmer first.”
Christopher Lang'at (Bomet) and Moses Wetang'ula (Bungoma) described it as an eye-opener that should trigger legislation to revolutionise maize, sugar, coffee and other agricultural sectors.
“All in that Bill is the contribution of various farmers in this country. We went to Kericho, Kisii, Nyamira and Embu and listened to all the farmers,” Lang'at said.
Mutula Kilonzo Jr (Makueni), Irungu Kang'ata (Murang'a), Enoch Wambua (Kitui), Ephraim Maina (Nyeri), Charles Kibiru (Kirinyaga), Mohamed Abdullahi (Wajir) and Gertrude Musuruve (nominated) also supported it.
The lawmakers passed the Bill moments after ODM leader Raila Odinga appealed to make it a Christmas gift for farmers. Raila urged the senators to help the country end the dramatic scenes of tea farmers uprooting their crops or promising to do so because of poor returns.
"Fixing the tea sector is a critical step to putting the country on a path of economic recovery through agriculture," he said.
Raila said the tea Bill is critical to ensuring farmers' financial security. The KTB will, among other roles, register factories; small scale, medium-scale and large-scale tea growers, warehouse operators, and packers.
The board will also register buyers, exporters, importers, brokers, management agents, auction organisers, commercial nurseries and commercial green leaf transporters.
“A small-scale tea grower and medium-scale tea grower shall register with the tea factory to which the respective tea growers delivers green or purple leaf using the prescribed form,” it reads.