- High Court Judge Anthony Mrima gave a temporary order pending determination of a case filed by Kenya Tea Growers Association.
- The implementation of the law in question will result in the association members being unable to fulfil their contractual obligations.
Court stops state from demanding additional levies from tea farmers https://t.co/P7bFhGBDa1 pic.twitter.com/FKoR2mWwHg
— TheStarKenya (@TheStarKenya) January 18, 2021
Tea farmers on Monday got a temporary reprieve after a judge stopped the state from demanding an additional levy.
High Court Judge Anthony Mrima gave a temporary order pending determination of a case filed by Kenya Tea Growers Association challenging some sections of recently passed Tea Act.
Also granted by the judge is an order suspending the implementation of the law being challenged.
The association is challenging Sections 36, 48 and 53 of the Tea Act 2020 on grounds that they were illegally inserted by Parliament without considering the plight of tea farmers.
They say the section is in contravention of the Constitution because the application of a tea levy on exports and curtailment of direct sales is discriminatory.
The court was told that introduction of the tea levy violates the rights of the farmers and puts them at a distinct disadvantage with respect to their counterparts in the East African Community market at the tea auction.
The association is also challenging a law allowing the exclusive sale of tea processed and manufactured in the country for the export market on the auction floor.
The association is also challenging a law allowing the exclusive sale of tea processed and manufactured in the country for the export market on the auction floor.
They are challenging Section 36 of the Tea Act. This, however, does not affect orthodox and specialty teas.
The association says its members have various direct contracts with tea buyers from Central Africa, the United Arab Emirates, Russia, Europe and Asia.
They say their contracts are for specific qualities and quantities for 2021 up to 2023.
Many of the direct contracts are in respect of customised categories of teas which are not sold through the auction and which have been certified by different agencies such as Rainforest, Fair trade and Ethical Tea Partnership.
These teas fetch a higher premium overseas.
The implementation of the law in question will result in the association members being unable to fulfil their contractual obligations.
They will lose the financial benefit of the direct/forward contracts which offer better and higher returns than auction prices.
In addition, implementation of the law will give a competitive edge to other countries in the region that will be able to continue selling their teas directly.
The case will come up for hearing on February 22.
Edited by Henry Makori