Agriculture Committee Intensifies Probe on Tea Pricing as KTGA and KTDA Face Lawmakers

 

A parliamentary inquiry into Kenya’s tea pricing regime intensified on Wednesday as the Kenya Tea Growers Association (KTGA) and the Kenya Tea Development Agency (KTDA) appeared before the National Assembly’s Agriculture and Livestock Committee.

The session, chaired by Hon. John Mutunga (Tigania West), examined the factors influencing tea prices amid growing concerns from farmers—particularly those from the West of the Rift Valley—over significantly lower bonus payments compared to their counterparts in the East.

KTGA Chief Executive Officer Lindah Oluoch briefed lawmakers on how tea pricing is established, explaining that brokers rely on samples submitted by producers ahead of scheduled auctions. She outlined rising operational costs that continue to erode farmers' earnings, identifying labour costs, which have risen by 42% over the past five years, energy costs, which have surged by 140% in the last decade, and regulatory charges heightened by recent government policy shifts.

Ms. Oluoch urged the government to ensure a stable and predictable regulatory environment to allow producers to plan effectively and invest in value addition and market expansion.

“We propose a moratorium on any further increments in regulatory fees, alignment of fees to actual service provision, enhanced efficiency, and sector-specific exemptions, given tea’s heavy reliance on export markets,” she told the Committee. “These interventions are critical to safeguarding competitiveness, jobs, and national and county revenues derived from the tea sub-sector.”

The Committee also grilled the KTDA delegation, led by Chairman Chege Kirundi, on representation within its board, disparities in tea quality assessments between regions, and differences in factory operational costs across the Rift. Lawmakers further sought clarification on the adoption of organoleptic versus scientific testing methods and the feasibility of installing orthodox processing lines across factories nationwide.

The ongoing inquiry was triggered by widespread discontent among farmers from the West of Rift, who claim their bonuses are disproportionately lower than those paid to farmers in the East despite similar production conditions.

In recent weeks, the Committee has toured tea factories in both regions and held engagements with farmers to uncover the causes of the disparity. Members have also inspected the Mombasa Tea Auction and held meetings with key industry players including the East African Tea Trade Association (EATTA), Tea Board of Kenya (TBK), and Chai Trading Limited.

The Committee is expected to table its final report on 2nd December 2025, just before Parliament proceeds on its long recess, potentially setting the stage for reforms in Kenya’s tea sector.