Tea factory bosses warn new law for sector to hurt farmers
Business
By
Boniface Gikandi
| Mar 28, 2026
One of the tea farms in Mathioya, Murang'a. Boniface Gikandi, Standard]
Over 80 tea directors in Murang’a County have warned that the proposals in the Tea Amendment Bill, 2023 could cause significant losses for farmers if not handled carefully.
They also rejected the proposed reduction of directors from six to five, accusing the Senate of micromanaging the tea sector despite it being governed by a memorandum.
“Murang’a has the highest number of factories, contributing 40 per cent of the country’s tea production.
It should lead the way, as if the situation is not addressed, farmers will face major losses,” said Githinji.
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The directors from the 10 factories under the Kenya Tea Development Agency (KTDA) met MPs from the county to deliberate on the potential effects of the proposed changes on the sector.
The consultation focused on collaborative approaches to strengthen the tea sector, with emphasis on farmers, factories, and the broader economy.
Parliamentarians Joseph Munyoro (Kigumo), Chege Njuguna (Kandara), Edward Muriu (Gatanga), and Sabina Chege (Nominated) agreed to actively debate the key issues in parliament next week as representatives of the tea farmers.
Led by James Githinji, the directors stated that the amendment would undermine the progress made under the Tea Act 2020 and should be withdrawn before the bill reaches its third reading.
They also highlighted that increasing the management fee from 1.5 per cent to 2 per cent of the sale would reduce the gains farmers make nationwide.
The Direct Settlement System (DSS) could jeopardise forex earnings of over Sh 2 billion annually, among other benefits.
Ngere Factory Chairman James Githinji emphasised that the gains achieved through the Tea Act 2020 must be safeguarded.
“KTDA Management Service seeks to revert to charging the management fee at two per cent, which will affect the farmers’ earnings,” Githinji stated.
In the meeting, Chege was appointed to handle the concerns of tea farmers, as she is a tea farmer from Kinyona in Kigumo. Munyoro appreciated the gesture by the factory directors to itemise the clauses in the amendment bill they wish to have removed.
He noted that although the amendment bill is in its second reading, the issue is not lost, and efforts will be made to ensure farmers’ interests are addressed.
“The parliamentarians have been close to the directors, and the issues raised will be attended to,” said Munyoro. Kigumo constituency includes the Gacharage, Ikumbi, and Makomboki tea factories, while Gatanga features Njunu and Ngere.
Concurrently, managers from 14 small-holder tea factories have been participating in capacity-building sessions aimed at aligning practices with evolving global market demands.
The production managers from KTDA-managed orthodox factories trained at Kionyo Tea Factory in Meru on positioning KTDA’s orthodox teas for enhanced competitiveness internationally and delivering greater value to farmers.
The training focused on standardising orthodox tea processing across factories, addressing emerging international concerns, and fostering knowledge exchange through peer learning and product evaluation.
This initiative also supports KTDA’s diversification strategy by strengthening quality, improving consistency, and driving ongoing improvement.