The Tea Board of Kenya has announced plans to licence more agents to expand the market for Kenyan tea.
CEO Willy Mutai said the board is set to amend regulations in the tea sector that have been in force since 2008.
He said this will bring changes to boost the tea industry in the country and bring better fortunes to farmers.
Mutai spoke at Kagwe tea factory in Lari, Kiambu county, while overseeing the election of Kenya Tea Development Agency (KTDA) Zone One board member.
He said the regulations will bring to an end the practice of having a few individuals trading in tea in the country.
Theta/Ndarugu tea factories director Gabriel Kagombe, who is also Gatundu South MP, was elected as the Zone One KTDA board member after garnering 17 votes. He floored former KTDA chairman David Ichoho, who got 14 votes.
Mutai said the regulations will allow TBK licence more traders, including individuals and private firms who can penetrate to more markets in the country, Africa and across the globe.
“Going forward, we will have regulations to regulate the sector to curb issues of illegal malpractices such as having a few individuals trading tea. This will allow us to licence more traders or buyers,” he said.
The CEO said there will be a regulation on marketing of Kenyan tea and amount the farmers should be paid.
Mutai hailed the steps adopted by the government and players in the sector, including KTDA, to add value to tea. He said the Sh1 billion value addition project established in Kericho and Nairobi is in top gear.
He said the government’s move to cut fertiliser costs by allocating Sh2 billion in the supplementary budget is a shot in the arm for farmers as this will enhance production of quality tea and increase their returns.
Mutai also hailed the 71 KTDA-managed factories in the country for upscaling their production, noting production has increased from 266 million kilos last year to 319 million kilos this year.
He termed the newly elected KTDA leaders as a "dream team" that will push the tea reforms agenda to improve the sector.
“We need to be present everywhere we sell our tea. We are lucky to have an MP who understands tea and sits in the national board," Mutai said.
"We will be able to push the agenda of reforms in the sub-sector to benefit our farmers, improve their livelihoods and fetch the country foreign income.”
Kagombe said marketing of tea has been made a business of an exclusive club, which he blamed as the reason the sector is not competitive in the beverages market.
He said time is ripe for all players to work together to ensure tea achieves an equal and commensurate share of market and pocket across the globe, just like other beverages like water, soda and alcoholic beverages.
Kagombe said they will focus on diversifying market strategies, which will include roping in more tea agents to penetrate all markets locally and internationally.
He said unlike tea, other makers of beverages have thousands of agents selling their brands.
“We must have a footprint in all markets to increase the prices of our tea, reduce backlog at the Mombasa auction and ensure our tea fetches the country and farmers high returns,” Kagombe said.
He said it is important to add value to increase tea brands in the global markets, which will increase consumption and make prices competitive.
Tea directors, led by Gachege tea factory chairman Kamau Mwago and Margaret Wamuthungu, urged farmers to maximise on their production and ensure their tea is of high quality. They said the future of tea in the country is bright as prices are set to increase.