Murang’a Tea Factories Set to Sign Management Agreement with KTDA

Murang’a, Kenya – The 10 tea factories in Murang’a County are now poised to sign management agreements with the Kenya Tea Development Agency (KTDA), marking a significant step in the tea industry’s reform process. This development follows the successful conclusion of negotiations between the factory directors and KTDA, which addressed concerns regarding proposed reforms in the new management agreements.

According to Kenya News Agency, the Tea Board of Kenya (TBK) Director for the Mt Kenya region, the agreement signing was postponed for nearly seven months to allow thorough discussions on the new reforms. The negotiations were initiated after the tea factories in Murang’a County rejected certain reforms stipulated in the initial management agreement draft. Key among the factory directors’ demands was to retain control over financial matters, leaving KTDA with the responsibility of managing staff and the processing of green leaf.

During the Annual General Meeting at Kiru Factory in Mathioya, Kirigwi announced that the directors representing Murang’a tea factories are ready to enter into a memorandum of understanding with KTDA, having resolved their initial reservations. He highlighted that all 19 tea factories west of the Rift had already signed the agreement in April. Kirigwi also commended Kiru factory chairman Chege Kirundi for his role in advocating for tea reforms and demanding negotiations for better deals for farmers and factories from KTDA.

Further, Kirigwi addressed the issue of the increasing trend of hawking green leaf in tea-growing zones, noting TBK’s commitment to tackling this challenge. He explained that hawking undermines the capacity at which tea factories operate and detailed measures to counteract this practice. Among these is the mandatory installation of trackers on vehicles transporting green leaf, which will be monitored by both the regulatory body and police. This measure is intended to streamline the tea industry and curb the activities of unauthorized merchants.

Kirigwi also revealed that TBK is investigating three firms suspected of being behind the hawking of green leaf. He emphasized the importance of every factory, before receiving a license, declaring its affiliated farmers and the expected quantity of green leaf supply. He expressed concern over the widespread issue of tea hawking, citing reduced production in factories due to this practice. The TBK Director further stated that the installation of car trackers would assist in identifying and addressing disruptions in the tea sector caused by external players.

Additionally, TBK has mandated tea factories to submit a list of their farmers to the regulator and to conduct regular inspections of weighing scales at tea buying centers, aiming to prevent corruption and protect the interests of tea growers.