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Originally published by The Standard Business
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December 8, 2025
5h ago

Task force proposes radical reforms to protect tea farmers

Task force proposes radical reforms to protect tea farmers

It calls for the amendment of the Tea Act, 2020, to conform to the growth and development of the tea industry...

✨ Key Highlights

A task force investigating disparities in tea prices in Kenya has proposed radical reforms, including reducing production costs and an independent audit of factory licensing. The Tea Pricing Inquiry Committee identified inefficient machinery and high labor costs as major issues impacting tea farmers' profitability.

  • The 132-page report recommends amending the Tea Act, 2020, and calls for reforms in all factories through cost reduction and prudent credit management.
  • The Tea Board of Kenya (TBK) is mandated to audit hydropower projects in the West of the Rift.
  • Tea factories are encouraged to explore direct sales to move away from sole reliance on the Mombasa Tea Auction.
  • Several factories face cash flow constraints, with a standing loan of Sh10.3 billion as of June 30.

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