Tea Amendment Bill Introduced in the National Assembly to Boost Tea Farmers’ Earnings
The Tea (Amendment) Bill, Senate Bill No. 1 of 2023, which seeks to amend key provisions in the Tea Act of 2020, has been introduced in the National Assembly following its first reading today. The Bill, which originated from the Senate, aims to protect tea growers’ earnings from mismanagement by tea factories and incentivize value addition within the sector.
The principal objectives of the amendment include ensuring better management of tea proceeds by factories and promoting the processing of value-added tea. To this end, the Bill proposes exempting value-added tea from the mandatory tea levy, a move that stakeholders believe will boost the profitability of tea processors and farmers alike.
The Bill, which passed the Senate on October 8, 2024, is now under review by the National Assembly’s Departmental Committee on Agriculture and Livestock. Once the committee completes its deliberations, a report will be tabled in the House for further debate at the second reading stage.
In a statement of support, the Chief Executive Officer of the Kenya Tea Development Agency (KTDA), Wilson Muthaura, expressed optimism that the Bill would significantly improve the financial wellbeing of tea farmers. “This is a landmark Bill that will enhance tea earnings for farmers across the country,” Muthaura said, highlighting its potential to drive sectoral growth.
The proposed amendments also aim to liberalize the tea industry by allowing direct sales of tea overseas, expanding marketing avenues, and improving price discovery. Advocates argue that the changes will offer farmers more control over their produce, while simultaneously making the sector more competitive in the global market.
Sponsoring the Bill in the Senate, Sen. Wakili Hillary Sigei and Hon. Brighton Yegon in the National Assembly have called on lawmakers to support the Bill, emphasizing its importance in strengthening the tea sector and uplifting the livelihoods of smallholder farmers.
As the Bill moves forward through the legislative process, stakeholders across the tea industry are closely watching its progress, hopeful that its passage will herald a new era of growth and sustainability for the industry.
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